CCMP Capital Advisors and The Hillman Companies, a portfolio company of Oak Hill Capital Partners, have signed an agreement under which CCMP will acquire a controlling interest in Hillman in a transaction valuing the company at $1.48 billion. Oak Hill first invested in The Hillman Companies in June 2010 when it acquired the company from Code Hennessy & Simmons and the Ontario Teachers’ Pension Plan.
Hillman Group is a value-added distributor of fasteners, key duplication systems, letters, numbers and signs, engraved tags, and builder’s hardware to over 26,000 retail customers in the United States, Canada, Mexico, South America and Australia. Hillman also provides its customers with product category management services for over 60,000 SKUs, including sourcing, logistics, merchandising displays, inventory management and in-store sales and service support. Customers include home improvement centers, mass merchants, national and regional hardware stores, pet supply stores and other retailers, including Ace Hardware, Do it Best Corp, Home Depot, Lowe’s, Menards, Petco, PetSmart, RONA, Tractor Supply, True Value and Walmart. Hillman was founded in 1964 and is headquartered in Cincinnati (www.hillmangroup.com).
“Hillman has been 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. We thank Jim Waters, Mick Hillman and the entire Hillman team for their efforts, and we are excited to partner with CCMP and management moving forward,” said Tyler Wolfram, Managing Partner of Oak Hill Capital.
CCMP is investing in partnership with Hillman’s current management team, led by CEO Jim Waters. Oak Hill will retain a significant minority interest in the company. Completion of the transaction is expected in the second or third quarter of 2014.
“Jim and his team 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,” said Joe Delgado, Managing Director of CCMP. “We look forward to working with Jim and the entire Hillman team to help drive Hillman’s next phase of growth as the company expands organically and through strategic acquisitions into adjacent markets and new geographies.”
CCMP specializes in making buyout and growth equity investments in the United States and Europe. The firm typically invests $100 million to $500 million of equity per transaction in companies with enterprise values of $500 million to $2 billion. Sectors of interest include consumer/retail, industrial, healthcare, and energy. CCMP is headquartered in New York (www.ccmpcapital.com).
Oak Hill Capital Partners has $8 billion of committed capital and invests in the following sectors six sectors: basic industries; business and financial services; consumer, retail & distribution; healthcare; media & telecom; and technology. Over the past 25 years, the professionals at Oak Hill Capital Partners and its predecessors have invested in more than 70 private equity transactions. The firm is located in Stamford, CT (www.oakhillcapital.com).
The Hillman Companies is being advised by Barclays on the transaction. CCMP is being advised by Morgan Stanley.
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-19-14
