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1847 Holdings (NYSE:EFSH) has completed the acquisition of CMD Inc., a Las Vegas-based cabinetry, millwork and door manufacturer, for approximately $18.75 million. CMD reported trailing twelve-month revenues of $33.1 million and net income of $10.4 million as of October 31, 2024.
The acquisition includes strategic expansion initiatives: CMD has obtained licenses to operate in Arizona and Utah, established a new division focused on tract home projects in Las Vegas, and plans to enter the Ready-To-Assemble (RTA) cabinetry market for multi-family housing through synergies with 1847’s subsidiary, Innovative Cabinets and Design.
1847 Holdings (NYSE:EFSH) ha completato l’acquisizione di CMD Inc., un produttore di mobili, falegnameria e porte con sede a Las Vegas, per circa 18,75 milioni di dollari. CMD ha riportato ricavi degli ultimi dodici mesi pari a 33,1 milioni di dollari e un reddito netto di 10,4 milioni di dollari al 31 ottobre 2024.
L’acquisizione include iniziative di espansione strategica: CMD ha ottenuto licenze per operare in Arizona e Utah, ha istituito una nuova divisione focalizzata su progetti di case in serie a Las Vegas e prevede di entrare nel mercato dei mobili pronti da montare (RTA) per alloggi multifamiliari attraverso sinergie con la controllata di 1847, Innovative Cabinets and Design.
1847 Holdings (NYSE:EFSH) ha completado la adquisición de CMD Inc., un fabricante de muebles, carpintería y puertas con sede en Las Vegas, por aproximadamente 18,75 millones de dólares. CMD reportó ingresos de los últimos doce meses de 33,1 millones de dólares y un ingreso neto de 10,4 millones de dólares al 31 de octubre de 2024.
La adquisición incluye iniciativas de expansión estratégica: CMD ha obtenido licencias para operar en Arizona y Utah, ha establecido una nueva división centrada en proyectos de viviendas en serie en Las Vegas y planea entrar en el mercado de muebles listos para ensamblar (RTA) para viviendas multifamiliares a través de sinergias con la subsidiaria de 1847, Innovative Cabinets and Design.
1847 Holdings (NYSE:EFSH)는 라스베가스에 본사를 둔 캐비닛, 목공 및 문 제조업체인 CMD Inc.의 인수를 완료했습니다. 인수 금액은 약 1,875만 달러입니다. CMD는 2024년 10월 31일 기준으로 지난 12개월 동안 3,310만 달러의 수익과 1,040만 달러의 순이익을 보고했습니다.
이번 인수는 전략적 확장 계획을 포함합니다. CMD는 애리조나와 유타에서 운영할 수 있는 라이센스를 취득하고, 라스베가스에서 주택 프로젝트에 중점을 둔 새로운 부서를 설립했으며, 1847의 자회사인 Innovative Cabinets and Design과의 시너지를 통해 다가구 주택을 위한 조립 준비 완료(RTA) 캐비닛 시장에 진출할 예정입니다.
1847 Holdings (NYSE:EFSH) a finalisé l’acquisition de CMD Inc., un fabricant de meubles, de menuiserie et de portes basé à Las Vegas, pour environ 18,75 millions de dollars. CMD a annoncé des revenus des douze derniers mois s’élevant à 33,1 millions de dollars et un bénéfice net de 10,4 millions de dollars au 31 octobre 2024.
L’acquisition inclut des initiatives d’expansion stratégique : CMD a obtenu des licences pour opérer en Arizona et en Utah, a établi une nouvelle division axée sur des projets de maisons en série à Las Vegas, et prévoit d’entrer sur le marché des meubles prêts à assembler (RTA) pour le logement multifamilial grâce à des synergies avec la filiale d’1847, Innovative Cabinets and Design.
1847 Holdings (NYSE:EFSH) hat die Übernahme von CMD Inc. abgeschlossen, einem in Las Vegas ansässigen Hersteller von Schränken, Tischlerarbeiten und Türen, für etwa 18,75 Millionen US-Dollar. CMD meldete für die letzten zwölf Monate Einnahmen von 33,1 Millionen US-Dollar und einen Nettogewinn von 10,4 Millionen US-Dollar zum 31. Oktober 2024.
Die Übernahme umfasst strategische Expansionsinitiativen: CMD hat Lizenzen zum Betrieb in Arizona und Utah erhalten, eine neue Abteilung gegründet, die sich auf Projekte für Serienhäuser in Las Vegas konzentriert, und plant, durch Synergien mit der Tochtergesellschaft von 1847, Innovative Cabinets and Design, in den Markt für sofort zusammenbaubare (RTA) Schränke für Mehrfamilienhäuser einzutreten.
Positive
- Acquisition price of $18.75M for a company with $33.1M revenue and $10.4M net income indicates highly accretive deal
- Geographic expansion into Arizona and Utah markets
- New dedicated division for tract home projects targeting local and national builders
- Strategic entry into Ready-To-Assemble cabinetry market for multi-family housing
Insights
This acquisition represents a significant strategic move for 1847 Holdings, with compelling financial metrics. The $18.75 million purchase price for a business generating $33.1 million in revenue and $10.4 million in net income indicates a remarkably low valuation multiple of approximately 1.8x earnings. The deal structure appears highly accretive, potentially doubling 1847’s market cap based on CMD’s earnings alone. The expansion into Arizona and Utah markets, coupled with the new tract home division and RTA cabinetry opportunity, presents multiple growth vectors. However, investors should note the execution risks in integrating the acquisition and maintaining CMD’s impressive profit margins.
The strategic timing of this acquisition aligns well with regional market dynamics. The Las Vegas construction market, particularly in the northern region, is experiencing significant growth, while Arizona and Utah present substantial expansion opportunities. The identified gap in Ready-To-Assemble cabinetry for multi-family housing represents an untapped market segment with high growth potential. The company’s multi-pronged approach – geographical expansion, tract home division and RTA market entry – creates diversified revenue streams. This strategic positioning in high-demand markets could provide significant competitive advantages and market share growth.
Acquisition Adds $33.1 Million in Revenue and $10.4 Million in Net Income
Transaction Highlights 1847’s Proven Business Model and Positions the Company for Sustained Profitability and Strong Cash Flow
NEW YORK, NY / ACCESSWIRE / December 17, 2024 / 1847 Holdings LLC (NYSE American:EFSH) (“1847 Holdings” or the “Company”), today announced the successful closing of its acquisition of CMD Inc. (“CMD”), a Las Vegas-based cabinetry, millwork and door manufacturer, with trailing twelve-month (TTM) revenues of $33.1 million and net income of $10.4 million as of October 31, 2024. The acquisition was completed for approximately $18.75 million, representing a highly accretive transaction for 1847.
Ellery W. Roberts, CEO of 1847 Holdings, commented, “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.”
With strong demand for residential and commercial construction in Arizona and Utah-areas in close proximity to CMD’s Las Vegas operations-the company has expanded its reach by obtaining licenses in both states. CMD is actively bidding on projects slated to begin in 2025, enhancing its market presence and capitalizing on the region’s construction boom.
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.
Research conducted in collaboration with CMD identified a significant gap in the supply of Ready-To-Assemble (RTA) cabinetry for Las Vegas’ multi-family housing market. To meet this demand, 1847 Holdings intends to leverage the capabilities of its subsidiary, Innovative Cabinets and Design, enabling CMD to tap into this underserved market and drive growth through 2025 and beyond.
Mr. Roberts added, “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.”
“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,” concluded Mr. Roberts.
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.
For the latest insights, follow 1847 on Twitter.
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:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: EFSH@crescendo-ir.com
SOURCE: 1847 Holdings LLC
View the original press release on accesswire.com
FAQ
What are the financial terms of 1847 Holdings’ (EFSH) acquisition of CMD Inc.?
1847 Holdings acquired CMD Inc. for approximately $18.75 million. CMD reported trailing twelve-month revenues of $33.1 million and net income of $10.4 million as of October 31, 2024.
What new markets is CMD expanding into after the EFSH acquisition?
CMD is expanding into Arizona and Utah markets, and has obtained licenses to operate in both states. Additionally, they’re entering the tract home market in Las Vegas and the Ready-To-Assemble cabinetry segment for multi-family housing.
How will the CMD acquisition affect EFSH’s financial performance?
The acquisition is expected to drive sustained profitability and strong cash flow for 1847 Holdings, as CMD brings $33.1 million in revenue and $10.4 million in net income to the company.
What synergies are expected from the EFSH-CMD merger?
The merger will leverage synergies between CMD and 1847’s subsidiary, Innovative Cabinets and Design, particularly in entering the Ready-To-Assemble cabinetry market for Las Vegas’ multi-family housing sector.
