1847 acquires CMD Inc. cabinetry, millwork and door producer

Based in Las Vegas, CMD Inc. produces cabinetry, millwork and doors for the residential and commercial markets. (Photo: CMD website)

NEW YORK, NY - 1847 Holdings LLC  has completed its acquisition of CMD Inc., a Las Vegas, Nevada-based cabinetry, millwork and door manufacturer, for $18.75 million.

Terms of the acquisition, finalized Dec. 17, were not disclosed. CMD Inc. had trailing twelve-month revenues of $33.1 million and a net income of $10.4 million as of Oct. 31. 

The news follows the announcement a few days earlier by 1847 Holdings that it had secured a private placement for gross proceeds of $11.42 million to fund the acquisition of the then unnamed company.

In announcing the completion of the acquisition, 1847 Holdings CEO Ellery W. Roberts said, "We believe this marks a transformative moment for 1847 Holdings. The acquisition of CMD further illustrates our ability to identify and acquire undervalued businesses with strong profitability at attractive valuations. With its historical revenue growth and profitability, this acquisition aligns with our strategic arbitrage model, which we believe will allow us to create substantial shareholder value by enhancing operational performance and leveraging synergies."

The company noted CMD's growth opportunities, and that it had obtained licenses in both Arizona and Utah, enabling it to serve the strong demand for residential and commercial construction in those states. 

"To further support growth in the Las Vegas area, CMD has established a dedicated division focused on tract home projects. Targeting both local and national builders, this initiative positions CMD to benefit from Northern Las Vegas' rapid residential expansion. This division has already begun bidding on multiple projects, which are expected to contribute incremental growth to CMD's portfolio," the release stated.

1847 said it also will leverage the capabilities of its subsidiary Innovative Cabinets and Design to aid CMD's advancement in the region's growing multi-family housing RTA cabinetry market.

"The strategic initiatives we're implementing, including CMD's expansion into high-demand areas and the launch of its tract home division, underscore our commitment to driving significant revenue growth. By addressing unmet market needs, particularly in RTA cabinetry, and leveraging synergies with our subsidiaries, we aim to deliver substantial incremental growth while strengthening CMD's market presence," Roberts said.

"We believe CMD's addition to our portfolio will drive sustained profitability, strong cash flow, and robust financial performance across 1847 Holdings. This acquisition reflects our commitment to unlocking value in overlooked middle-market businesses, positioning us for continued growth and creating long-term value for our shareholders," he added.

Founded by Roberts and headquartered in New York, New York, 1847 Holdings LLC (NYSE American: EFSH) is a publicly traded diversified acquisition holding company. In addition to Innovative Cabinet and Design, other subsidiaries include Kyle's Custom Wood Shop Inc. and WOLO Manufacturing Corp.

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Karen Koenig | Editor

Karen M. Koenig has more than 30 years of experience in the woodworking industry, including visits to wood products manufacturing facilities throughout North America, Europe and Asia. As editor of special publications under the Woodworking Network brand, including the Red Book Best Practices resource guide and website, Karen’s responsibilities include writing, editing and coordinating of editorial content. She is also a contributor to FDMC and other Woodworking Network online and print media owned by CCI Media. She can be reached at [email protected]