Hillman strikes US$2.64b merger with blank-cheque firm Landcadia

CONSTRUCTION hardware supplier Hillman Group has struck a US$2.64 billion deal to merge with Landcadia Holdings III, a blank-cheque company led by Houston Rockets billionaire owner Tilman Fertitta and Jefferies Financial Group.

Investors led by Wells Capital Management and a fund managed by Columbia Threadneedle Investments will contribute US$375 million in equity to support the transaction, said a statement on Monday that confirmed a Bloomberg News report.

Cincinnati-based Hillman makes fasteners and other home improvement products. It has relationships with more than 38,000 companies, including Lowe's and Home Depot, its website said.

Private equity firm CCMP bought the company in 2014 from another such firm for US$1.5 billion, said a statement at the time.

CCMP will remain the largest holder in the company, the statement said.

"We looked at our options and obviously, private equity was an option, and we felt that this SPAC (special purpose acquisition company) route was also an option," Hillman chief executive officer Doug Cahill said in an interview. "That could get us to market quicker."

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He also said the company was set to benefit from a shift in how people think of their residences, now that so many are working from home.

"It's gone from a place where people would eat, sleep and watch TV - now it's school, it's an office, it's entertainment, it's recreation," he said.

"We've always been focused on repair and remodel. We think the trends are very positive as we think forward."

Landcadia Holdings III raised US$500 million last year to pursue a transaction in any industry. Mr Fertitta is the SPAC's CEO and Jefferies CEO Rich Handler is president, with both men serving as co-chairmen. Jefferies is a co-sponsor of the SPAC.

Mr 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, Bloomberg News has reported. BLOOMBERG