Craft Capital Management LLC Advises 1847 Holdings Acquisition of Direct-to-Builder and New Construction Custom Cabinet Maker and Closes Preferred Share Financing Transaction
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Craft Capital Management LLC Advises 1847 Holdings Acquisition of Direct-to-Builder and New Construction Custom Cabinet Maker and Closes Preferred Share Financing Transaction

Wednesday, October 7, 2020 12:40 PM
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NEW YORK, NY / ACCESSWIRE / October 7, 2020 / 1847 Holdings LLC (OTCQB:EFSH) (the "Company"), 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, today announced the completion of its acquisition of Kyle's Custom Wood Shop, Inc. ("Kyle's"), 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.

"We set out to complete this transaction within 60 days of when we announced it, and we delivered on that goal, completing the acquisition in just over 30 days," stated Ellery W. Roberts, the CEO of 1847 Holdings. "Kyle's is a great addition to our portfolio with strong positive cash flow, 30% operating margins, and a 7.1% CAGR on revenue over the past three years. It also has a clean capital structure with no debt, affording us substantial flexibility as we work to unlock value creation through participation in opportunities previously untouched by this regional operation. I look forward to working with the Kyle's team as we capitalize on these opportunities to accelerate growth and build lasting shareholder value."

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, 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.

The Company appointed Ken Yuan, an Operating Partner to 1847 Holdings, as CEO of Kyle's. Prior to working with 1847 Holdings, Yuan was the Head of Strategy at FedEx Supply Chain where he led a team of analysts and worked closely with the CEO office in developing growth strategies. Prior, Yuan was the president of American Plastics, a provider of medical-grade materials and services to the Orthotic & Prosthetic industry, where he led the company in developing new product-offerings and expanding its customer base. Because of Yuan's effort, American Plastics' sales grew by more than 10% and its EBITDA grew by more than 15% in less than two years. Ken successfully helped the owners of American Plastics exit the business by selling it to a strategic buyer.

Previously, Yuan was a Director with Alvarez & Marsal North America, LLC., a global professional services company. At Alvarez & Marsal, Yuan developed and executed a vendor management strategy for a $14 billion, tier-1 automotive supplier in securing a $135 million bankruptcy court vendor relief; negotiated a $120 million senior debt facility for a corrugated packaging company; and developed a POS system implementation play for a $300 million oil-&-lube franchisee for its bankruptcy restructuring.

Prior to Alvarez & Marsal, Yuan worked at TPG Capital, a global, large-cap private equity firm. His work at TPG focused on portfolio-company performance and operational analysis, and his operational portfolio included companies such as Neiman Marcus, Petco, and Debenham.

Craft Capital CEO Barry Kiront said "This transaction continues to follow 1847 Holdings model, and their CEO Ellery Roberts mission, of growing 1847 Holdings into a well-diversified company, that acquires strong businesses".

The Company raised the capital to fund this acquisition through the private placement of its Series A Senior Convertible Preferred Shares. The Series A Preferred Shares pay dividends on a quarterly basis at an annual rate of 14% and are redeemable, at the Company's option, at a redemption price equal to 115% of the stated value plus accrued but unpaid dividends. The securities of the Company issued in connection with the acquisition of Kyle's and the related financing transaction will not participate in the Company's recently announced special dividend of the common stock of its subsidiary, 1847 Goedeker Inc.

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.

About Craft Capital Management LLC

Craft Capital Management is a full-service broker dealer and investment bank. Areas of focus include numerous growth sectors such as biotechnology, consumer goods and services, retail, financial services and business, technology, healthcare, medical device, and other categories. Craft Capital Management assists companies with corporate finance services, including initial public offerings, follow-on offerings, private placements, registered direct offering, corporate notes, credit lines and financial advisory services. Additional information about Craft Capital Management LLC is available at www.craftcm.com. If you would like to inquire how Craft Capital may be able to assist with your company financial needs, please contact us at [email protected].

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.

Contact:

Craft Capital Management LLC
Barry Kiront-CEO
516-833-1325

SOURCE: Craft Capital Management LLC

Craft Capital Management LLC
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