Oak Hill in $1.47bn exit to CCMP

CCMP’s acquisition of the Hillman Companies comes as the firm seeks $3.5bn for its third buyout fund.  

New York-based CCMP Capital Advisors will acquire a majority stake in the Hillman Companies from Oak Hill Partners for $1.475 billion, according to a statement.  

Hillman sells a variety of hardware goods, locks, and keys through retailers like Home Depot and Walmart. Word first broke that Hillman was up for sale on 14 May, at which time the company was valued at between $1.2 and $1.4 billion.  

CCMP is investing in partnership with Hillman’s current management team, led by chief executive officer Jim Waters. Oak Hill Capital and its affiliates will retain a significant minority interest in the company. Oak Hill first acquired Hillman in 2010 for $815 million.  

CCMP has been actively divesting portfolio companies this month. The firm sold Spanish cable broadband service provider Ono to Vodafone for £6 billion (€7.2 billion, $10 billion) alongside Providence Equity Partners, Quadrangle Capital Partners and Thomas H Lee Partners. The exit generated a return multiple of 7.5x EBITDA and 10.4x free cash flows in 2013. CCMP also sold UK-based vacuum pump manufacturer Edwards Group to Swedish industrial group Atlas Copco, generating a 3.5x return multiple and 23 percent net IRR. 

CCMP is also part of the high profile proposed merger between Sysco and US Foods, through its stake in South African company Jetro Holdings which has emerged as a notable rival to the two companies. The spate of transactions highlights the fever pitch of global M&A activity which recently surpassed $1 trillion for the first time since 2007, according to the Financial Times. 

CCMP is aiming to wrap up fundraising for its third buyout fund, CCMP Capital Advisors III, which is targeting $3.5 billion. The 2013 vintage vehicle had raised $1.7 billion as of October, according to Private Equity International’s Research and Analytics division.