1847 Holdings Explores Strategic Alternatives for CMD

Strong Inbound Interest Drives Decision to Evaluate Strategic Alternatives

1847 Holdings LLC (“1847 Holdings” or the “Company”) announced that it is evaluating potential strategic alternatives for its subsidiary, CMD Inc. (“CMD”). This decision is a result of the significant inbound interest from both strategic and financial sponsors, which the Company believes reflects CMD’s strong market position, financial performance, and growth trajectory.

BMO Capital Markets Corp., (“BMO”) a leading financial institution with deep expertise in the building products sector, will support CMD in exploring potential options that would align with CMD’s long-term potential with a goal to deliver optimal value for shareholders.

CMD is a premier provider of door solutions, custom cabinetry, and building enhancements serving multi-family residential, institutional, and commercial markets. With a differentiated market position, high-margin business model, and expanding geographic footprint, CMD has attracted substantial interest from potential acquirers seeking exposure to the sector’s growth dynamics.

For the nine months ended September 30, 2024, CMD reported revenues of $23.3 million, representing a 21.8% increase over the same period in the prior year. CMD’s gross profit for the nine months ended September 30, 2024, increased by 51.3% to $10.8 million, while income from operations rose 85.4% to $6.7 million, in each case, from the nine months ended September 30, 2023. For the nine months ended September 30, 2024, net income grew by 90.6% to $6.6 million over the same period last year, which the Company believes underscores CMD’s strong financial trajectory and market demand.

“We are excited to work with BMO Capital Markets as we evaluate strategic alternatives for CMD,” said Ellery W. Roberts, CEO of 1847 Holdings. “The substantial inbound interest we have received is a testament to CMD’s strong market presence and financial performance. Given CMD’s impressive growth and the strategic value it presents, we believe this is the right time to explore opportunities that could unlock significant value for our shareholders. With BMO’s extensive M&A expertise and deep industry relationships, we believe we are well-positioned to achieve an optimal outcome.”

About 1847 Holdings

1847 Holdings LLC (NYSE American: EFSH), a publicly traded diversified acquisition holding company, was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue, and Principal of Lazard Freres Strategic Realty Investors. 1847 Holdings’ investment thesis is that capital market inefficiencies have left the founders and/or stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their business. Given this dynamic, 1847 Holdings can consistently acquire businesses it views as “solid” for reasonable multiples of cash flow and then deploy resources to strengthen the infrastructure and systems of those businesses in order to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to 1847 Holdings’ ability to pay regular and special dividends to shareholders. For more information, visit www.1847holdings.com.

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Contact:

Crescendo Communications, LLC – EFSH@crescendo-ir.com – (212) 671-1020

Source: 1847 Holdings LLC