NEW YORK, Sept. 03, 2020 (GLOBE NEWSWIRE) — 1847 Holdings LLC (OTCQB: EFSH), a publicly traded holding company platform that combines the attractive attributes of private, lower-middle market businesses with the liquidity and transparency of a publicly traded company, signed a purchase agreement to acquire Kyle’s Custom Wood Shop, Inc., a leading custom cabinetry maker servicing the direct-to-builder and new construction markets. Based in Boise, Idaho, Kyle’s has designed, built, and installed custom cabinetry for new construction since 1976. The acquisition is expected to close within 60 days. Any shares of the Company issued in connection with the acquisition of Kyle’s will not be eligible to participate in the Company’s recently announced special dividend of 1847 Goedeker Inc.’s common stock to its shareholders.
“Kyle’s has grown revenue at a 7.1% CAGR over the past three years with 30%+ operating income margins, well above industry averages,” commented Ellery W. Roberts, CEO of 1847 Holdings. “They have a solid track record of positive cash flow and a base of well-known regional clients with relationships and recurring revenue spanning nearly a decade. With a clean capital structure and no debt, we should be afforded substantial flexibility in financing which could help unlock value creation through participation in previously neglected opportunities.”
Strong housing demand in the region is driven by out-of-state immigration into Idaho. Current operations are focused primarily in the Boise area, providing opportunities to capitalize on high-growth adjacent regions. In addition to regional expansion, 1847 Holdings plans to expand capacity by increasing the network of builders, participating in new bids, and investing in facilities and labor resources. Product line expansion and broadening sales channels to include multifamily housing, remodels, and DIY segments could further accelerate growth.
Idaho’s population grew by 2.1% in 2019, faster than any other state, and the Boise Metro Area was the eighth fastest growing metro in the US, seeing a population increase of 2.8%. Driven by retirees and older workers attracted to lower home prices, shorter commutes, less natural disasters, and fewer taxes, the majority of inbound Idaho movers earn above the state income level.
Roberts continued, “Similar to the success we generated with 1847 Goedeker, which completed its IPO on the NYSE American in July, we believe there is value waiting to be unlocked with Kyle’s, and we look forward to applying our experience as we work alongside their team to build shareholder value.”
About 1847 Holdings LLC
1847 Holdings LLC (OTCQB: EFSH) is a publicly traded partnership that combines the most attractive attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company. 1847 Holdings seeks to generate returns for shareholders in the future through consistent, annual distributions of operating subsidiary income and capital appreciation resulting from the timely sale of operating subsidiaries.