1847 Holdings to acquire consumer products company, terms not disclosed

1847 Holdings has signed a definitive agreement to a acquire a premier consumer products company in the United States. The Target generated unaudited revenue in excess of $20 million and positive EBITDA in 2022. The acquisition is expected to be funded without the issuance of any common stock or dilutive equity and is expected to be completed before the end of the third quarter of 2023, subject to customary closing conditions. Ellery W. Roberts, CEO of 1847, commented, “We are excited to add this consumer products company, with its solid revenue, attractive margins and positive EBITDA, to our portfolio of cash flow positive companies. The Target is positioned to execute on several near-term, attractive growth opportunities, as well as operational enhancements that are expected to drive higher sales and margins. The Target also provides meaningful cross-selling and co-branding opportunities across our portfolio companies. Our agreement to acquire the Target without issuing any equity is a further illustration of our commitment to driving long-term shareholder returns. Moreover, as previously announced, we are advancing plans to restructure our outstanding convertible notes with current investors. These steps are expected to significantly enhance our capital structure. While these funding mechanisms were necessary as we built our foundation, we are now in a stronger financial position, which has allowed us to secure more favorable financing terms by properly leveraging debt. Moreover, we expect our projected cash flow will allow us to resume our dividends and opportunistically repurchase stock in the future, subject to establishing a stock buyback plan and future market conditions. Notably, Egan-Jones recently affirmed their BB+ rating on our senior credit facility, which we believe is an important third-party validation of the strength of our balance sheet. Overall, we believe we are on solid footing and remain committed to full transparency. I believe the fact that I have and continue to purchase shares of the Company in the open market should illustrate my own conviction and confidence in the outlook for the business.”