Strong Inbound Interest Drives Decision to Evaluate Strategic Alternatives

NEW YORK, NY / ACCESS Newswire / March 25, 2025 / 1847 Holdings LLC (NYSE:EFSH) ("1847 Holdings" or the "Company") today 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: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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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:

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SOURCE: 1847 Holdings LLC

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1847 Holdings Explores Strategic Alternatives for CMD