1847 Goedeker Inc. Announces Definitive Agreement for the Acquisition of 100% Ownership in Appliances Connection, a Leading Online Retailer of Household Appliances with Projected 2020 Revenue of $300M

1847 Goedeker (Goedeker's) is an industry leading e-commerce destination for appliances, furniture, and home goods. Since its founding in 1951, Goedeker's has transformed from a local brick and mortar operation serving the St. Louis metro area to a respected nationwide omnichannel retailer that offers one-stop shopping for national and global brands. While the Company maintains its St. Louis showroom, over 90% of sales are placed through its website (www.goedekers.com). Goedeker's provides visitors an easy to navigate shopping experience and offers more than 185,000 items organized by category and product features. Specialization in the home category has enabled Goedeker's to build a shopping experience and an advanced logistics infrastructure that is tailored to the unique characteristics of the market.

  • Leading online marketer of brand-name appliances
    • Generated sales of $38.4M in 9-months ended Sept 30, 2020
    • Customer base of higher income, higher wealth shoppers
    • 2019 US appliance sales were $18.3B and growing at 13.7% CAGR

  • Appliances Connection acquisition to drive 10x revenue growth in 2021
    • Forecasting $550M revenue with $37.8M EBITDA in 2021
    • Combined logistics result in shorter delivery times thus less cancellations and reduced costs

  • Favorable margins and competitive pricing
    • Network of distributor, manufacturer-direct buying, and installer relationships drives favorable margins while offering customers competitive pricing
    • Post-Acquisition Valuation Highlights a 9x Arbitrage Opportunity on GOED’s EV/Sales versus peers

  • Strong near-term growth potential
    • Strengthened balance sheet with July 2020 IPO ($10M gross proceeds)
    • Immediately scalable business model grows cost-effectively with ad spending

  • Industry-focused management team
    • Experience and performance in online marketing
    • CEO Doug Moore brings 25 years of retail experience