Hillman Expands Industrial Reach with $315M Acquisition of Kanebridge Corporation
CINCINNATI — In a significant move to grow its industrial market presence, Hillman Solutions Corp. (Nasdaq: HLMN) has agreed to acquire Kanebridge Corporation, a major fastener distributor, for $315 million. The deal is expected to enhance Hillman’s position in the industrial sector, where it has identified vast potential for future growth.
Kanebridge, a leader in master distribution of industrial fasteners, has been operating successfully for over half a century. From its warehouses in Illinois and California, the company delivers over 44,000 commercial and military-grade fastener stock keeping units (SKUs) to distributors across the U.S. and Canada. Kanebridge is known for its fast turnaround times and its FasNet™ digital platform, which allows clients to place orders efficiently and enjoy same-day shipping.
Strengthening Hillman's Platform
With Kanebridge’s digital and operational capabilities, Hillman gains a robust platform to support its current operations. The FasNet™ system is especially valuable for its ease of use and speed, which are not always standard among competitors. Hillman plans to integrate this technology into its existing infrastructure to drive further improvements in customer satisfaction and logistics efficiency.
This acquisition is a key component of Hillman’s broader industrial growth strategy, which it outlined at a recent Investor Day. The deal expands Hillman’s industrial addressable market by $1 billion, raising the total to $3 billion. It also opens up the ability to address long-tail and highly specialized fastener needs, with opportunities for cross-selling across Hillman’s Commercial & Industrial, Pro, and DIY customer segments.
Jon Michael Adinolfi, President and CEO of Hillman, emphasized that the acquisition aligns with the company’s disciplined and strategic approach to mergers and acquisitions. He noted that the integration of Kanebridge is expected to result in cost savings through Hillman’s sourcing and distribution strengths. Additionally, the transaction will lead to sales synergies via cross-selling and significant tax advantages, underlining the strategic and financial rationale behind the deal.
Once the acquisition is complete, Kanebridge will operate under Hillman’s Commercial & Industrial business, led by Chris Martin, EVP. Martin praised Kanebridge’s long track record of excellent customer service and its expertise in maintaining strong fill rates. He highlighted that Kanebridge’s U.S.
Deal Structure and Advisors
The transaction has already received the approval of both companies’ boards. Before closing, it must still pass regulatory review and satisfy other customary conditions. Hillman intends to fund the purchase using a combination of cash, borrowings under its existing asset-based revolving credit facility, and an expansion of its First Lien Term Loan, which it will raise through the capital markets.
To support the deal, Jefferies LLC is serving as Hillman’s financial advisor, while Thompson Hine LLP handles legal advisory. Piper Sandler is the financial advisor for Kanebridge, and Koley Jessen P.C., L.L.O. is providing legal counsel.
Founded in 1964 and headquartered in Cincinnati, Hillman has built a strong foundation in the hardware industry through its 60+ years of service to retail, professional, and industrial markets. The company partners with North America’s leading home improvement and hardware retailers and is distinguished by a large field sales team of over 1,200 associates. Its direct-to-store delivery system and strong global sourcing capabilities support a diverse product portfolio of more than 111,000 SKUs.
Hillman’s offerings include fasteners such as power screws, nuts, and bolts, as well as hardware like builder’s hardware, door hardware, and rope and chain solutions. Its extensive product range and strong distribution network are essential in integrating Kanebridge’s operations and expanding its industrial reach.
A Strategic Growth Milestone
The acquisition strengthens Hillman’s long-term growth strategy in the industrial market. By leveraging Kanebridge’s master distributor model with Hillman’s global sourcing expertise and wide-ranging product offerings, the company is better equipped to meet the complex and specialized needs of industrial and specialty customers across North America.
The integration of Kanebridge into Hillman’s operations represents a strategic milestone for the company. Together, the two organizations can deliver a more comprehensive and efficient solution for industrial fastening needs, setting a foundation for continued innovation and market leadership.
With Kanebridge’s established relationships and digital capabilities, Hillman is positioned to capitalize on its $3 billion addressable market. This acquisition is just one example of how Hillman’s disciplined, long-term approach to growth continues to drive value across its business.