1847 Holdings LLC (OTC: EFSH) acquires and operates American companies it acquires at attractive valuations, leveraging its management team’s extensive experience gained at leading investment firms, such as Colony Capital, Lazard Freres and Saunders, Karp & Megrue, to grow operations and create value.
1847 may opportunistically monetize the ownership of operating subsidiaries over time to generate returns on capital for 1847 shareholders via outright sales, recapitalizations or spin-offs.
Current assets in its portfolio include Goedeker’s, one of the top-30 largest appliance retailers in the country, Neese, an established agricultural services company, and Asien’s Appliances, a leading Bay Area appliance retailer. In the firt half of 2020, 1847 announced its intentions to spinoff Goedeker’s as an IPO.
1847 Holdings: Acquisitions and Spinoffs of Growing US-Based Businesses
1847 employs a unique public, private company holding platform that combines the attractive attributes of private, lower-middle market businesses with the liquidity and transparency of a publicly traded company. Its only public-company comp, Compass Diversified Holding (NYSE: CODI), has a current market cap in excess of $1 billion and is up 344% since its 2006 IPO, compared to 193% for the S&P 500 and 163% for the Russell 2000 over the same period. 1847 seeks opportunities for growth and margin improvement of its subsidiary holdings through additional resources and implementation of return-driven metrics and accountability.
Leveraging an expansive network of deal flow contacts in a niche of the private company arena often overlooked by investment banks and larger private equity funds, 1847 is ideally positioned to scale and manage its portfolio.
Strong management team with expansive deal flow network
- Led by founder and CEO Ellery W. Roberts, former Managing Director of SKM Growth Investors LP, a Dallas-based private equity fund focused on recapitalizations, buyouts, and growth capital in lower middle-market companies, where he managed $400M across two funds; previously Roberts was a principal at Lazard Freres & Co., where he was a senior team member involved in the investment of $2.4B+ of capital; and worked at Colony Capital, where he analyzed and executed transactions for a $625M private equity fund
- Managing Director Edward Tobin was previously Director of Global Emerging Markets (GEM), where for 15 years he managed Special Situations and Venture investing for GEM’s Partners Capital Fund
Three completed acquisitions create solid foundation
- Stable, mature businesses with margin improvement and revenue growth opportunities
- The Company’s Goedeker’s acquisition is being spun out as an IPO
- Trailing 12-month sales of first two acquisitions: $50.6M; third acquisition, Asien’s Appliances, was acquired after the most recent quarter was reported
Acquisition strategy focused on value creation; robust pipeline
- Institutes return-driven metrics/accountability and add resources (personnel, processes, and/or technology) to drive growth
- Extensive deal network
- Strategically evaluate exit opportunities of subsidiaries to monetize successes