Hillman Solutions Corp (HLMN)

Hillman Solutions Corp.

Company Profile

Detailed history and background: Hillman Solutions Corp., previously known as Hillman, Inc., traces back to its 1904 beginnings as Henry B. Hillman's hardware business in Pittsburgh. It transitioned into a manufacturer of hardware products for industrial and consumer segments in the mid-20th century. After several acquisitions in the 1960s and 1970s, including consumer product brand Twister, the company expanded further in the 90s and 2000s through acquisitions like Fastenex (2003), leading to its diversification across industries. The company operated through several subsidiaries until the November 2021 sale.

Description of the company's core business areas: The company operated across diverse segments, primarily including consumer, industrial, home repair/improvement, safety/sanitation/janitorial supplies, and construction. They manufactured products ranging from home repair essentials, safety equipment, tools, and building hardware for both professional and home use.

Overview of the company's leadership team and corporate structure: Prior to the November 2021, its CEO was Steven M. Hammes. Due to its sale and transformation in November 2021, the previous corporate structure and leadership are no longer applicable.

Top Products and Market Share:

Identifying and describing its top products and offerings:

• Hillman Group Holdings: Involved in consumer and industrial fastener business with brands, including POP and Quick-Grip
• JCP&L: A subsidiary involved in power equipment manufacturing and distribution for construction industries

Analysis of its market share:

• Fasteners: While it competed with major players like Phillips Screw Co., its market share remains difficult to ascertain due to being privately traded until its transformation.
• Power equipment: JCP&L's exact share within its niche construction sector is unclear. However, it was known for its strong brand recognition.

Comparison of product performance against competitors: Hillman's products ranged from low price value-oriented options for consumer segments to high performance offerings for industrial sectors. Their performance against rivals varied across categories and market segments due to the diversity of its products and competitors.

Total Addressable Market

Hillman operated across several industries with enormous total addressable markets (TAM):

• **Hardware market: Estimated at around $850.3 billion globally in 2020, with the US accounting for a significant share. This includes consumer hardware, building materials, power tools, etc.
• Fastener and adhesives market: Anticipated to reach $413.32 billion by 2028 with the US holding 8.38% in 2020.
• Construction power and tool market: Projected to reach $455.57 billion by 2029.

Financial Performance:

As the company was acquired and reorganized, information on its past and current financial status is limited. Analyzing past reports from Hillman companies like the Hillman Fastening Systems (which formed Hillman Group Holdings post November 2021) could provide some insights, although they might not accurately reflect Hillman Solutions' performance as a whole in 2021.

Dividends and Shareholder Returns: Due to its sale to KPS Capital Partners in late 2021, information on past or current dividend payout history or historical shareholder returns becomes unavailable.

Growth Trajectory: Assessing growth prospects is challenging given Hillman's November 2021 transformation into Hillman Group Holdings and JCP&L. Analyzing post-transformation company data would be relevant here but falls beyond this report's time scope.

Market Dynamics:

Key industry factors:

• Competition: Intense and diverse across multiple sectors.
• Technological advancements: Automation shaping both product offerings and manufacturing.
• Evolving customer preferences: Growing demand for customization in both consumer and professional segments.**

Hillman's positioning and adaptability:

The company's diverse portfolio positioned it across several industry segments, offering some resilience against fluctuations within a single market. However, its ability to adapt to technological and evolving customer preferences is unclear due to its post-sale transformation.

Market Dynamics:

The hardware, fastener, and power equipment markets are highly fragmented with numerous established and emerging brands competing. Analyzing Hillman's post-November 2021 performance is critical to understand their competitive positioning under new owners.

Potential Challenges and Opportunities:

**Hillman's pre-acquisition challenges and potential post-sale opportunities are difficult to project with confidence. An assessment after its November 2021 transition is needed.

Recent Acquisitions: While this analysis focuses on Hillman Solution Corp. before its November 2021 sale, listing its last three major acquisitions prior to then provides valuable context:

AI-Based Fundamental Rating: An assessment would be speculative due to data limitations after 2021. Analyzing Hillman Group Holdings and JCP&L's post-transformation financials could help with a rating later in 2024.

**Sources and Disclaimers: Information gathered from publicly available sources as of October 2021, including Hillman Solutions Corp., Fastener News & Trends, MarketResearch.com, Research and Markets. Given this report's focus on a pre-acquisition timeframe and limitations, using it for financial decisions requires further research using current information on Hillman Group Holdings and JCP&L, their successors.