5/20/2014
HEADLINES
ACQUISITION: Investors Acquire Hillman Companies
Jim Waters
The Hillman Companies Inc. and CCMP Capital Advisors LLC have signed an agreement allowing CCMP to acquire a controlling interest in Hillman from Oak Hill Capital Partners. The deal values Hillman at $1.475 billion.
CCMP is investing with Hillman’s management team, led by CEO Jim Waters.
Oak Hill Capital and affiliates will retain a minority interest in Hillman.
Founded in 1964 as a fastener and keys company, Hillman supplies products for commercial and residential products for the hardware and home improvement industry.
Hillman offers 130,000 SKUs in categories including fasteners, key duplication systems, letters, numbers and signs, engraved tags, builder’s hardware, and the recently added nail, deck and drywall category to 26,000 retail customers in the U.S., Canada, Mexico, South America and Australia. Customers include Ace Hardware, Do it Best Corp., Home Depot, Lowe’s, Menards, Petco, PetSmart, RONA, Tractor Supply, True Value and Walmart.
In 2013, Hillman acquired Canadian fastener manufacturer H. Paulin & Co. Ltd. for $103.4m.
CCMP managing director Joe Delgado said Waters and managers “have established Hillman as an essential product and services provider in the hardware and home improvement industry. The company has a tremendous platform, including a unique, high-touch sales and service team of over 800 members and a sophisticated sourcing and distribution network throughout the U.S., Canada and Mexico.”
Delgado said Hillman’s next phase of growth will be both organic and “strategic acquisitions into adjacent markets and new geographies.”
Waters observed that “CCMP has extensive experience in retail/supply management, distribution and building products companies, a vast network of relationships, and a track record of adding lasting value at its portfolio companies.”
CCMP specializes in middle market buyouts and growth equity investments of $100 million to $500 million in North America and Europe. Investments under management include: Aramark Corporation, Chaparral Energy, Infogroup, Jamieson Laboratories, Jetro Holdings, LHP Hospital Group, Milacron, Newark Energy, Ollie’s Bargain Outlet and Pure Gym.
Oak Hill managing partner Tyler Wolfram termed Hillman “a successful investment for Oak Hill Capital. Since investing in the company in 2010, we have worked closely with management to define and execute a strategic and operational plan that has enabled Hillman to grow EBITDA by approximately 50% during that time and positioned the company for future growth.”
Hillman’s publicly traded trust preferred securities (nyse-amex:HLM.PR) will remain outstanding, will not be converted or exchanged and will continue to trade on the NYSE-AMEX.
The acquisition is expected to close by the third quarter of 2014. ©2014 GlobalFastenerNews.com
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