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 Appliance Retailer Generating Double-Digit Growth
Led by an impressive management team with deep experience in the online retail space, Goedeker’s provides shareholders with an opportunity to invest in a fast-growing direct-to-consumer (DTC) e-commerce Company that markets, sells, and installs home appliances, furniture, and other home goods. With a strong balance sheet from its July 2020 IPO, which raised gross proceeds of $10 million, the Company is ideally positioned to execute its strategic plan to sequentially increase revenue by expanding ad spending in the near and mid-term. This spend leverages a stable fixed cost structure to produce increasing operating profits. Consistent with its increasing ad spend, Goedeker’s plans improvements to its logistics infrastructure to support strong sales growth, ultimately driving earnings growth and improved shareholder value. Accelerating its path to $1 billion in annual revenue, the Company announced its acquisition of Appliances Connection in November 2020. The combined companies would generate approximately $362.8 million revenue and $27.3 million EBITDA for fiscal 2020 and $554.8 million revenue and $37.8 million EBITDA in fiscal 2021.
1847 Goedeker: Leading Online Appliance Retailer Expecting $400M Sales in 2021
The Company is making key investments in people, processes, and systems to significantly grow its e-commerce retail platform, which currently accounts for 90% of revenue. To accelerate growth, Goedeker’s intends to partner with nationally accredited advertising and marketing agencies to more efficiently utilize advertising dollars. The Company is also expanding into the commercial market, leveraging its low-priced business model, which will create substantial revenue opportunities and more repeat business.
1847 Goedeker: Leading Appliance Retailer Generating Rapid Growth
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