Hillman Solutions Corp., a prominent provider of hardware products and merchandising solutions, has successfully acquired Koch Industries Inc., a premier provider and merchandiser specializing in rope, twine, chain, wire rope, and related hardware products. This strategic move marks Hillman’s foray into a new product category, broadening its offerings and enhancing its market position.
With the addition of rope and chain products to its expanding portfolio, Hillman aims to seamlessly introduce these items to its existing customer base, realizing shipping, sourcing, and service efficiencies in the process.
The acquisition aligns with Hillman’s strategy of diversifying its product offerings, having recently entered the adjacent category of rope and chain accessories. The inclusion of rope and chain products further strengthens Hillman’s relationships with blue-chip customers.
Doug Cahill, Chairman, President, and CEO of Hillman, expressed enthusiasm about the acquisition, stating, “This bolt-on, attractive acquisition allows us to leverage our moat to capitalize on growth opportunities in this new product category.” Cahill highlighted Koch’s strong, long-term relationships with its top-ten customers, averaging over 20 years of collaboration.
He emphasized Hillman’s commitment to customer care through its extensive field sales and service team, direct-to-store shipping approach, and a portfolio of owned brands that set the company apart.
Randy Koch, Co-owner and Co-CEO of Koch, shared insights into the decision, saying, “For 45 years, we have built Koch Industries with the goal of delivering quality products with the highest level of service for our customers. Transitioning our business to Hillman was an obvious choice, considering their strong competitive moat and track record of growth and service.”
Dave Koch, the other Co-owner and Co-CEO, expressed confidence in the fit between the two companies, emphasizing the positive impact on employees and customers. The acquisition includes Koch’s 2,300 SKUs in the complex, high-touch category of rope and chain, complementing Hillman’s existing portfolio of 112,000 SKUs.
Koch Industries, founded by Randy and Dave Koch, has built a reputation for delivering quality products and services. During its fiscal year ended May 31, 2023, Koch’s revenue totaled approximately $45 million. The financial terms of the transaction were not disclosed.
As Hillman continues to strengthen its market presence, the acquisition of Koch Industries reflects a strategic move to enhance its product offerings and solidify its position as a leader in the hardware and merchandising solutions industry. The addition of rope and chain products aligns with Hillman’s commitment to meeting customer needs and pursuing growth opportunities.