Private equity firm CCMP Capital Advisors LLC is buying a majority stake in the Hillman Companies Inc. The deal values Hillman, a manufacturing company, at nearly $1.5 billion.
Hillman, headquartered in Cincinnati, Ohio, manufactures products for commercial and residential uses, as well as inventory management and in-store merchandising services. The company was founded in 1964 as a fastener and key maker. The company's products are sold in Ace Hardware, Home Depot (NYSE: HD), Lowe's (NYSE: LOW), Petco, PetSmart (Nasdaq: PETM), Tractor Supply (Nasdaq: TSCO), WalMart (NYSE: WMT) and other retailers.
CCMP is buying the stake from Oak Hill Capital Partners for an undisclosed amount. Oak Hill will retain a minority interest in the company. The firm invested in Hillman in 2010, and has grown Ebitda by about 50 percent.
New York-based CCMP focuses on consumer, industrial, health care and energy investments. The firm's professionals also manage the private equity portfolio of J.P. Morgan Partners. Prior investments include Cabela's, Pinnacle Foods Group and Chromalox. For more on CCMP, see Mergers & Acquisitions video interview with Christopher Behrens on corporate carve-outs.
Morgan Stanley is providing financial advice to CCMP, while Barclays is acting as Hillman's financial adviser.