Chicago-based middle-market buyout firm Code Hennessy & Simmons today announced an agreement to buy key specialist The Hillman Companies from Allied Capital for approximately $510 million (€397 million).
The deal is a big win for Allied Capital, which will realise a profit of about $192 million, according to the firm.
Allied Capital specialises in providing debt and equity to medium-sized businesses. The firm expects to provide as much as $47.5 million in new mezzanine financing to Hillman.
Hillman, based in Cincinnati, Ohio, manufactures key-making equipment and key blanks.
Peter Gotsch, a partner at Code Hennessey, led the deal for the firm.
Last month, Code Hennessey agreed to purchase publicly held Gundle/SLT Environmental, provider of geosynthetic lining products and services, for approximately $213 million.
Founded in 1988, the firm manages $1.5 billion of committed capital in four private equity funds.
Allied Capital, based in Washington DC, is a publicly traded “business development company,” meaning the firm is required to distribute the bulk of its profits to shareholders.