Proposed Transaction Would Represent A Significant Return on Investment and, If Completed, Would Result in a Debt-Free Company with Three Operating Subsidiaries
Definitive Agreement Targeted Within 60-90 Days; Transaction Aligns with 1847's Value-Creation Strategy
NEW YORK, NY, April 23, 2026 (GLOBE NEWSWIRE) -- 1847 Holdings LLC (OTC: LBRA) ("1847" or the "Company"), a diversified acquisition holding company focused on identifying and monetizing overlooked, deep-value businesses, today announced that it has entered into a non-binding letter of intent ("LOI") for the sale of its wholly owned subsidiary, CMD, Inc. ("CMD"), to a strategic buyer backed by a major global private equity firm.
Under the terms of the LOI, the proposed transaction values CMD at $65 million in an all-cash transaction, subject to the negotiation and execution of definitive transaction documents, customary closing conditions, and the completion of confirmatory due diligence. The Company currently expects to execute a definitive agreement and close the transaction within approximately 60 to 90 days, although there can be no assurance that a definitive agreement will be reached or that the transaction will be consummated.
The Company acquired CMD in December 2024 for approximately $18.75 million. If the transaction is consummated at the contemplated price, the sale would represent a return of approximately three times the original purchase price over a holding period of approximately one and a half years.
If the transaction is consummated as contemplated, the Company expects to use proceeds to repay all outstanding debt. Following such repayment, the Company would evaluate the deployment of remaining capital in support of its continuing operations and potential future acquisitions.
Ellery W. Roberts, CEO of 1847 Holdings, commented, "Entering into this LOI is an important step for our company. While the LOI is non-binding and there can be no assurance that a definitive agreement will be reached, we acquired CMD at what we believed to be an attractive valuation, focused on operational improvements, and are pleased to have reached this non-binding letter of intent. The proposed $65 million, all-cash transaction reflects both the buyer's interest in the asset and our efforts during the holding period."
"If the transaction is completed, we would retain three operating subsidiaries - Wolo Manufacturing, Kyle's Custom Wood Shop, and Innovative Cabinets & Design. We believe these businesses present opportunities for continued value creation. With reduced debt and existing operations, we would be positioned to evaluate additional acquisitions consistent with our strategy."
CMD provides cabinetry, millwork, and door solutions serving multi-family residential, institutional, and commercial markets. The prospective buyer is a strategic participant in the building products sector.
No binding commitment with respect to the proposed transaction exists, and there can be no assurance that a definitive agreement will be executed or that the transaction will be consummated on the terms described herein or at all.
Mr. Roberts added, "This proposed transaction is consistent with our approach to value creation. We believe there may be a disconnect between the value of our portfolio and our current public market valuation, and we look forward to continuing to execute on our strategy."
About 1847 Holdings LLC
1847 Holdings LLC (OTC: LBRA), a diversified acquisition holding company 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 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expect," "anticipate," "believe," "intend," "estimate," "target," "may," "will," "should," "could," "plan," "predict," "potential," "project," and similar expressions identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: the proposed sale of CMD and the expected timing, terms, and consummation thereof; the expected use of proceeds from the proposed transaction; the Company's anticipated capital structure following the proposed transaction; the Company's future business strategy and acquisition plans; and the value, performance, or prospects of the Company's subsidiaries. These statements are based on management's current expectations and assumptions and are subject to significant risks, uncertainties, and other factors that could cause actual results to differ materially from anticipated results, including: the failure to negotiate or execute a definitive agreement; the failure to satisfy closing conditions or obtain required approvals; changes in market conditions or the financial condition of the buyer; the failure to realize expected benefits from the proposed transaction; and other risks described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: LBRA@crescendo-ir.com
