The problem. Capital market inefficiencies have left the founders and/or stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their business.
Given this dynamic, 1847 Holdings (NYSE: EFSH) can consistently acquire businesses it views as "solid" for reasonable multiples of cash flow and then deploy resources to strengthen the infrastructure and systems of those businesses in order to improve operations.
The end result? These improvements may lead to a sale or IPO of an operating subsidiary at higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to EFSH's ability to pay regular and special dividends to shareholders.
1847 Holdings (NYSE: EFSH) has acquired ICU, a leading designer of Over-the-Counter (OTC), non-prescription reading glasses, sunglasses, blue light-blocking eyewear, sun readers, and outdoor specialty sunglasses in February 2023. ICU was founded in 1956 and is headquartered in Hollister, California.
ICU is a recognized leader in reading eyewear and sunglasses, as well as select health and personal care items. ICU has 10 brands and a comprehensive and innovative product offering of over 3,000 SKUs across the reading glass, sunglass, and health & personal care segments.
ICU's customer base consists of a broad range of national, regional, and specialty retailers comprising over 7,500 retail locations. ICU is the only OTC eyewear supplier in the U.S. to have meaningful penetration in all significant retail channels including grocery, specialty, office supply, pharmacy, and outdoor sports stores.
High Mountain: Specializes in all aspects of finished carpentry products and services, including doors, door frames, baseboards, crown molding, cabinetry, bathroom sinks and cabinets, bookcases, built-in closets, fireplace mantles, etc., working primarily with large homebuilders of single-family homes and commercial and multifamily developers.
Innovative Cabinets & Design: Specializes in custom cabinetry and countertops for a client base consisting of single-family homeowners, builders of multi-family homes, as well as commercial clients.
Kyle's Custom Wood Shop, Inc.: Headquartered in Boise, ID, the company believes 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, EFSH 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.
WOLO Manufacturing Corp.: A leader in horn technology (electric, air, truck marine, electronic specialty, air & backup alarms) and vehicle emergency warning lights offering the highest quality and the largest selection for cars, trucks, and industrial equipment. Wolo has supplied innovative automotive products: horns, emergency warning lights, security, and lighting, to the automotive aftermarket for more than 45 years.
The company sells its products to big-box national retail chains, through specialty and industrial distributors, as well as online/mail order retailers and OEMs. With a stellar reputation for innovative design, its current product line consists of over 455 products, including 54 patented products, as well as over 90 exclusive trademarks.
Former subsidiary Goedeker’s performance after IPO’ing prove EFSH's ability to unlock and create value.
Goedeker Inc. is an industry-leading e-commerce destination for appliances, furniture, and home goods.
The company was founded by CEO Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue, and Principal of Lazard Freres Strategic Realty Investors.
Ellery W. Roberts leading the reins has helped elevate EFSH to an NYSE listing and his expertise could soon lead the company to much greater heights!
"I'm pleased to report revenues increased by 27.6% to $15.4 million and we achieved net income of $1.0 million for the first quarter of 2023. At the same time, our gross profit increased 35.0% over the same period last year. These results are further validation of the strength of our platform and our ability to acquire undervalued, cash flow positive, lower-middle market businesses at attractive valuations with minimum dilution to shareholders. Importantly, we are reaffirming our prior guidance of revenue in excess of $90 million in 2023.”
CEO Ellery W. Roberts
Ms. Howard has served as Chief Financial Officer since September 2021. She has over 30 years of experience in the fields of finance and accounting. Prior to joining us, she worked for Independent Electrical Contractors, Inc. and its affiliates for over eleven years as Chief Financial Officer, where she was responsible for providing leadership to the organization in the areas of finance, human resources and general facilities administration, in addition to setting policies, procedures, strategies, practices and overseeing the organization’s assets. The foundation of Ms. Howard’s accounting and finance experience began with public accounting for several years gaining experience in tax and auditing in the entertainment and nonprofit sectors as Chief Financial Officer for The Cronkite Ward Company, a television production company, and Director of Finance for Community Action Group (CAG), a nonprofit organization. Before her work with Independent Electrical Contractors, Inc., Ms. Howard’s professional background established an emphasis in forensic accounting. Ms. Howard is a Founding Member of Chief, which is a DC based vetted network of C-level or rising VP’s supporting and connecting exceptional women. Ms. Howard holds a Master of Business Administration in Finance from Trinity Washington University Graduate School of Business Management and Bachelor of Science in Accounting from Duquesne University.
Mr. Milburn joined 1847 in February 2023 after serving as a member of the company’s board of directors since August 2022. Mr. Milburn brings diverse operational and strategic expertise across multiple sectors, including commercial finance, labor negotiations, and operations management.
Before joining 1847, Mr. Milburn served as a Director at Ygrene Energy Fund, a consumer finance company based in California. Mr. Milburn also served as Partner at Jimmy Blackman & Associates, a full-service government and public affairs firm, where he was responsible for business strategy, client management, communications, and campaign management for a client portfolio comprised of large public safety labor unions, banking/finance companies, and hotel operators across the state of California. Mr. Milburn has also served as a special assistant in the City of Los Angeles, where he held two positions, one in the office of Los Angeles Mayor Eric Garcetti’s Office of Economic Development and another in the office of Los Angeles City Council. Previously, Mr. Milburn served as Executive Vice President of Texas AF2 Holdings, managing a portfolio of sports franchises handling their operations, compliance, and strategic planning.
Mr. Milburn co-founded Provident Investment Advisors LLC, a special investment vehicle for energy, technology, and healthcare ventures, where he served as a managing member. Mr. Milburn also serves on the board of directors ofPolished.comInc. Mr. Milburn holds a B.A. degree in Public Policy from Stanford University and an M.B.A. from the Kelley School of Business at Indiana University.
A Strategic Collaboration:
ICU Eyewear Holdings Inc. and Wolo Manufacturing Corp. have entered into a strategic collaboration to develop safety glasses for the automotive market.
According to Grand View Research, the global safety eyewear market size was valued at $3.74 billion in 2021 and is expected to record a compound annual growth rate (CAGR) of 4.4% from 2022 to 2030. North America accounted for the largest revenue share, 31.4%, of the global safety eyewear market in 2021.
"Our goal is to provide our customers with innovative products that protect them and keep them safe. ICU is a recognized leader in reading eyewear and sunglasses, as well as select health and personal care items such as personal protective equipment, making them the perfect partner for us. Additionally, ICU's customer base consists of a broad range of national, regional, and specialty retailers comprising over 7,500 retail locations. We look forward to working closely with ICU to develop a state-of-the-art safety eyewear brand for the automotive market."
Dan Brown, Chief Executive Officer of Wolo
Developing these safety glasses for the automotive market represents a new product category for ICU and the company expects to launch in the third quarter of 2023..
With a repeatable process that allows 1847 Holdings (NYSE: EFSH) the opportunity to sell subsidiaries at a profit, this holding company may soon be capturing major Wall Street attention as it sells at mere pennies a share.
The company has proven its strategy is successful with the case of Goedekers, a company it acquired for $6.2M which later on went to have an enterprise value at IPO of $58.5M!!
Led by a seasoned management team and a CEO who has directly been involved in $3B+ transactions, EFSH is showing the lucrative opportunity there is to cater to a niche category.
Small businesses are the backbone of the economy. According to the Small Business Administration, small companies generate 1.5 million jobs a year and account for 64% of new jobs in America. Small businesses also contribute 44% of the U.S. economic activity, so as the number of new businesses grows so does their economic contribution!
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