The Hillman Group to go public through merger with Landcadia Holdings III at ~$2.64B valuation

Jan. 25, 2021 8:31 AM ETHillman Solutions Corp. (HLMN)HLMNBy: Niloofer Shaikh, SA News Editor4 Comments
  • The Hillman Group, a leader in the hardware and home improvement industry and Landcadia Holdings III (LCY) signs a merger agreement at implied valuation of $2.642B.
  • The combined company will be named Hillman Solutions and will trade on Nasdaq under the new ticker symbol “HLMN.”
  • Hillman’s Chairman, Chief Executive Officer and President Doug Cahill will continue to lead the combined company in these roles along with the current management team, and will be a significant equity participant in the company.
  • Estimated cash proceeds from the transaction are expected to consist of Landcadia III’s $500M of cash in trust and $375M million in the form of a PIPE at $10/share.
  • The company expects to use the proceeds to accelerate Hillman’s growth initiatives, substantially reduce existing debt, support marketing efforts, and provide additional working capital.
  • The combined company will have ~$741M of debt net of $96M of cash and cash equivalents on its consolidated balance sheet.
  • Upon the closing, existing Hillman shareholders are expected to own 49%, the Landcadia III sponsors 5%, PIPE participants 20% and public stockholders 26% of the combined company.
  • The transaction is expected to close in 2Q21
  • LCY +1.71% premarket.

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