Transaction values combined entity at more than $2 billion. Private equity firm CCMP has owned majority stake since 2014.
Construction hardware supplier Hillman Group Inc. is in talks to go public through a merger with Landcadia Holdings III Inc., a blank-check firm led by billionaire Tilman Fertitta and Jefferies Financial Group Inc.’s Rich Handler, according to people with knowledge of the matter.
The special purpose acquisition company, or SPAC, has held talks to raise new equity from investors to support the transaction, which is set to value the combined entity at more than $2 billion, said the people, who asked to not be identified because the matter isn’t public. A deal could be announced within weeks, they said.
As no deal has been finalized, terms could change or talks could collapse. Private equity firm CCMP Capital Advisors owns Hillman.
Representatives for Hillman, CCMP and Jefferies declined to comment. A representative for Fertitta didn’t immediately respond to a request for comment.
Landcadia Holdings III rose as much as 10% on the news and was up 1.6% at 3:02 p.m. in New York on Friday.
Cincinnati-based Hillman makes fasteners and other home improvement products. It has relationships with more than 38,000 companies, including Lowe’s Cos. and Home Depot Inc., its website shows. CCMP bought the company in 2014 from another private equity firm for $1.5 billion, according to a statement at the time.
Landcadia Holdings III Inc. raised $500 million last year to pursue a transaction in any industry. Fertitta is the SPAC’s chief executive officer and Handler is president, with both men serving as co-chairmen. Jefferies is a co-sponsor of the SPAC.
Fertitta, who has been involved in two other Landcadia SPACs, is in talks to take his casino and restaurant empire public through a merger with Fast Acquisition Corp., people familiar with the matter said this week.
Read more/Source: Fertitta’s Restaurant, Gaming Arm Said in SPAC Merger Talks
The building products sector has experienced a boom in dealmaking amid the Covid-19 pandemic. Workers subjected to lockdowns have increasingly looked to buy new, larger homes in the suburbs or renovate existing properties.
Source: Bloomberg
By Gillian Tan, Kiel Porter, and Davide Scigliuzzo
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