1847 Holdings LLC Enters Agreement to Acquire CMD and Finish Carpentry Companies

On November 4, 2024, 1847 CMD Inc., a wholly owned subsidiary of 1847 Holdings LLC, signed a significant stock and membership interest purchase agreement with the owner of CMD Inc. and CMD Finish Carpentry LLC. The Purchase Agreement entails the acquisition of all the issued and outstanding capital stock of CMD and membership interests in Finish for a total cash purchase price of $18,750,000. This transaction is expected to be finalized on or before December 3, 2024.

As per the terms of the Purchase Agreement, the Purchase Price is subject to adjustments based on the net working capital at the closing date. Any post-closing adjustments in favor of 1847 CMD will be settled in cash, while adjustments favoring the Seller will be addressed through a promissory note. This note will be secured by the assets of 1847 CMD and the CMD Companies, backed by guarantees from the Company and the CMD Companies, along with a pledge agreement in their equity.

Standard clauses within the Purchase Agreement include representations, warranties, and covenants. Notably, the Seller is prohibited from engaging in competition with 1847 CMD’s business for a three-year duration post-closing. Mutual indemnification provisions are in place for breaches of commitments and warranties outlined in the agreement. In circumstances where the Seller is accountable for indemnified losses due to breaches of non-fundamental representations and warranties exceeding $60,000, liability may extend to all losses from the first dollar, capped at $2,512,500.

The completion of this acquisition is contingent upon meeting customary closing conditions. The transaction stands as a strategic move for 1847 Holdings LLC, expanding its portfolio and market presence within the sector.

The Chief Executive Officer of 1847 Holdings LLC, Ellery W. Roberts, signed off on the agreement on behalf of the registrant as of November 8, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read 1847’s 8K filing here.

About 1847

1847 Holdings LLC engages in the acquisition and management of small businesses in different industries. It operates through the following segments: Retail and Appliances, Construction, and Automotive Supplies. The Retail and Appliances segment provides a wide variety of appliance services including sales, delivery, installation, service and repair, extended warranties, and financing.