CCMP Capital Advisors said Monday it has agreed to acquire a controlling stake in The Hillman Companies from fellow private equity firm Oak Hill Capital Partners in a deal that values the Cincinnati-based hardware distributor at $1.48 billion.
Weil, Gotshal & Manges is representing CCMP in the transaction, while Paul, Weiss, Rifkind, Wharton & Garrison is serving as outside counsel to both Oak Hill and Hillman.
Hillman, a portfolio company bought by Oak Hill in 2010, distributes fasteners, key duplication systems and other hardware items sold by 26,000 retailers in the U.S., Canada, Mexico and South America, including Ace Hardware, Home Depot, Lowe’s and other big-box retailers and hardware chains.
The agreement calls for CCMP, which describes itself as specializing in middle-market buyouts in North America and Europe, to purchase shares of Hillman from Oak Hill, which will retain “a significant minority interest” in the business, according to both companies. The transaction should close sometime in the second or third quarter of 2014, subject to regulatory approvals.
“We are thrilled to partner with CCMP as we enter this new chapter of our growth,” Hillman CEO Jim Waters said in a statement.
The Weil team advising CCMP includes corporate partner David Blittner, finance partner Heather Emmel and partner Andrew Colao in New York; tax partner Jared Rusman in Dallas; employee benefits partner Michael Nissan and counsel Steven Margolis in New York; intellectual property partner Jeffrey Osterman and partner Elizabeth Weiswasser in New York; and environmental counsel Matthew Morton in Washington, D.C.
The Weil associates working on the deal are Andrew Arons, Claire Comfort, Yvanna Custodio, Owen Denby, Ginger Ellison, Caroline Geiger, Tom Hashagen, Julian Lista, Adam Mendelowitz, Rosemary Morgan, Faiza Rahman, Eric Remijan and Jake Schneider.
Richard Jansen is CCMP’s managing director and general counsel.
Oak Hill and Hillman have retained Paul Weiss. The firm’s team is led by corporate partner Angelo Bonvino and tax partner David Sicular.
Douglas Roberts, a former Thompson Hine partner, serves as Hillman’s general counsel and secretary, while John Monsky serves as Oak Hill’s general counsel and partner. Morgan Stanley is serving as CCMP’s financial adviser; Barclays is acting in that role for Hillman.
Both Oak Hill and Hillman are regular Paul Weiss clients. A team from the firm that included both Bonvino and Sicular represented the private equity firm when it bought Hillman in 2010 for $815 million. The two partners were also part of the Paul Weiss team that represented Hillman last year in connection with its acquisition of Class A common shares of H. Paulin & Co. Paulin, a Canadian distributor and manufacturer of fasteners, fluid system products, automotive parts and retail hardware components, as well as Hillman’s purchase of TagWorks in 2011.
Another other notable deals in which Paul Weiss advised Oak Hill was the private equity firm’s sale of the Duane Reade drugstore chain to Walgreens for $1.075 billion in 2010.