ICU Eyewear Diversifies Its Manufacturing With The Help Of 1847 Holdings - Move Expected To Reduce Costs "Significantly"

NEW YORK, NY / ACCESSWIRE / April 11, 2024 / From investments to revenue generation, diversification is key to growing a business, and that seems to be true when it comes to ICU Eyewear Holdings Inc., a subsidiary of private equity holding firm 1847 Holdings LLC (AMEX:EFSH). The online purveyor of sunglasses, readers and anti-blue light glasses recently announced it has geographically diversified its manufacturing operations beyond mainland China to now include both the Philippines and a manufacturing partner in the U.S. That's a big deal for ICU Eyewear. It not only gives it more manufacturing might, but the company reports it was able to negotiate favorable pricing with its existing and new manufacturing partners and eliminate certain tariffs, which it said should "significantly" reduce its cost of goods.

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"ICU remains dedicated to enhancing the reliability and efficiency of its supply chain. Notably, we expect to benefit from a 25% savings on accessories, which represents 20% of ICU revenue, and a 10% savings on eyewear, which represents 80% of revenue," said Christine Roach President & CFO of ICU Eyewear, in a statement. "Our new US manufacturing partner is planning to integrate advanced technology into its operations, which will allow ICU to benefit from cutting-edge manufacturing processes, thereby ensuring we continue to offer the absolute highest quality product to our customers."

Big Name Customers On The Roster

ICU, which 1847 acquired for $4.5 million in February 2023, is a leading designer of over-the-counter (OTC) non-prescription reading glasses, sunglasses, blue light-blocking eyewear, sun readers and outdoor specialty sunglasses. Founded in 1956 and headquartered in Hollister, California, ICU reports it is the number one provider of OTC eyewear at Target Corp. and has a huge customer base of national, regional and specialty retailers. All told, ICU eyewear can be found in 7,500 retail locations across the country.

According to 1847, it is the only OTC eyewear supplier in the U.S. to have "meaningful penetration" in all the significant retail channels, including grocery, specialty, office supply, pharmacy and outdoor sports stores. In 2020, ICU formed its ICU Personal Care brand to serve the needs of existing and new customers for personal protective equipment (PPE) and related personal care categories. The company earned revenue of over $19 million in 2021, with gross margins of about 40% and adjusted EBITDA of $1.7 million. ICU has over ten brands and more than 3,000 SKUs across the reading glass, sunglass, and health and personal care segments.