NEW YORK, NY / ACCESSWIRE / February 20, 2024 / 1847 Holdings LLC ("1847" or the "Company") (NYSE American:EFSH), a unique holding company that combines the attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company, today announced its decision to divest of its subsidiary, 1847 Asien Inc. ("1847 Asien"), which provides a wide variety of appliance services, as part of its strategic realignment and focus on core operations.
The decision to dispose of 1847 Asien comes after a comprehensive review of 1847 Holdings' portfolio and strategic objectives. The divestiture aligns with 1847 Holdings' commitment to optimizing its resources and enhancing shareholder value.
Mr. Ellery W. Roberts, CEO of 1847, commented, "This decision is expected to reduce 1847 Holdings' expenses by about $10.9 million annually, and should have a positive impact on the margins related to the primary business lines. Additionally, it will permanently reduce the Company's total liabilities by approximately $4.5 million. This divestiture marks an important step in our strategic journey, one that is focused on operational profitability and shareholder value enhancement. Although we are disappointed that we were not able to turn operations as quickly as we had hoped, we believe that we are taking the right steps to enhance operating results in the immediate term and to better position our platform to provide growth capital to the divisions that are showing positive returns. In turn, we are positioning ourselves to complete potential opportunities that we are currently reviewing and that we believe would be immediately accretive."
"Even in the current capital markets environment, we see 1847 Holdings as an excellent potential partner to a number of large and profitable businesses, who have been dissuaded from pursuing the traditional IPO route. As we move forward, we have two mandates: first, to sharpen the focus on our core businesses and their profitability: and second, to free up capital and bandwidth for significant accretive growth opportunities. We believe the divesture of 1847 Asien adheres to both mandates, enabling us to streamline operations, allocate resources more efficiently, and better position 1847 Holdings for sustained growth and profitability. Our actions today are consistent with our commitment to delivering value to our shareholders, and we will continue to explore opportunities for growth and innovation in line with our long-term strategic objectives," concluded Mr. Roberts.
Additional details of the divestiture of 1847 Asien will be available upon the filing of a Current Report on Form 8-K, which will be filed with the Securities and Exchange Commission and available on the Company's website once filed.
About 1847 Holdings LLC
1847 Holdings LLC (NYSE American:EFSH), a publicly traded diversified acquisition holding company, was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue, and former Principal of Lazard Freres Strategic Realty Investors. 1847 Holdings' investment thesis is that 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 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. 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 1847 Holdings' ability to pay regular and special dividends to shareholders. For more information, visit www.1847holdings.com.
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Forward-Looking Statements
This press release may contain information about 1847 Holdings' view of its future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on our management's beliefs, assumptions, and expectations of our future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include but are not limited to the risks set forth in "Risk Factors" included in our SEC filings.
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SOURCE: 1847 Holdings LLC