Hardware and fastener distributor Hillman announced Monday that it has reached an agreement to acquire fastener wholesale distributor Kanebridge Corp. for an estimated $315 million.
Officials said that Kanebridge supplies industrial and commercial distributors across the U.S. and Canada from its warehouses in Illinois and California, which house over 44,000 commercial and military-grade fastener SKUs.
Hillman leaders noted that the industrial market represents one of its top opportunities to meet ambitious company growth targets; the addition of Kanebridge, they said, would bolster its addressable market in that sector by about $1 billion, and would immediately establish a scaled platform to serve “long-tail, high-specification fastener requirements across industrial and specialty distribution channels.”
Kanebridge's U.S. operations, officials added, would also complement Hillman's industrial presence in Canada, and the deal would create cross-selling opportunities across Hillman's commercial and industrial, professional, and do-it-yourself customers.
"Kanebridge gives us an immediate and credible foothold in the industrial channel, which we've identified as one of our biggest growth opportunities,” Hillman President and CEO Jon Michael Adinolfi said in a statement. “Their master distributor model, capabilities-driven platform, and long-standing distributor relationships make it a great fit for us.”
Kanebridge will join Hillman’s commercial and industrial segment, which is led by Executive Vice President Chris Martin. The deal has already been approved by the boards of both companies but remains subject to approval by regulators.
