1847 Holdings explores strategic alternatives for CMD

1847 Holdings (EFSH) is evaluating potential strategic alternatives for its subsidiary, 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 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 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 $23.3M, 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 $10.8M, while income from operations rose 85.4% to $6.7M. 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 $6.6M over the same period last year, which the Company believes underscores CMD’s strong financial trajectory and market demand.