NEW YORK — Just months after finalizing a deal to acquire the Las Vegas cabinet company, CMD Inc., equity firm 1847 Holdings LLC said it is evaluating potential strategic alternatives for the subsidiary. 

This decision, the company said, 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., a financial institution with 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."

In December 2024, 1847 Holdings completed its acquisition of CMD Inc., a Las Vegas-based cabinetry, millwork and door manufacturer, for $18.75 million. By February, the private equity firm was entertaining an offer for the company. A month later, it hired BMO.

According to a company statement, CMD's "differentiated market position, high-margin business model, and expanding geographic footprint" have attracted substantial interest from potential acquirers seeking exposure to the sector's growth dynamics.

In February, the company reported that CMD Inc. achieved strong financial results for FY2023 and the first nine months of 2024. In FY2023, revenues grew 97.5% to $27.1 million, with net income reaching $5.8 million, marking a significant turnaround from a $1.5 million loss in 2022.

For the nine months ended September 30, 2024, CMD continued its growth trajectory with revenues up 21.8% to $23.3 million and net income increasing 90.6% to $6.6 million. The company has implemented strategic initiatives including expansion into Arizona and Utah markets, establishing a new division for tract home projects in Northern Las Vegas, and plans to enter the Ready-To-Assemble cabinetry market for multi-family housing through synergies with subsidiary Innovative Cabinets and Design, said Ellery W. Roberts, CEO, in February. 

"Additionally," he said in a release, "we have established a dedicated division focused on tract home projects in Northern Las Vegas, targeting both local and national builders. Recognizing a significant market opportunity in supplying Ready-To-Assemble (RTA) cabinetry for Las Vegas' multi-family housing market, we plan to leverage synergies with 1847 Holdings' subsidiary, Innovative Cabinets and Design, to address this demand."

Roberts said that with BMO's extensive M&A expertise and deep industry relationships, "we believe we are well-positioned to achieve an optimal outcome."