Koch Industries

Cherry Tree Advises Koch Industries on their Sale Process

IntegritySolutions

“Cherry Tree was instrumental in gauging the market and determining values and how to make a transaction successful in a difficult environment.”

— Rod Garbe, Chief Operating Officer and Chief Financial Officer, Koch Industries, Inc.

INDUSTRY:
Consumer Products

DESCRIPTION:
Koch Industries is a premier provider and merchandiser of rope and twine, chain and wire rope, and related hardware products

HQ LOCATION:
Minneapolis, MN

TRANSACTION TYPE:
100% Sale to Hillman Solutions Corp.

Transaction

In January 2024, Koch Industries, Inc. (“Koch” or the “Company”) was acquired by Hillman Solutions Corp. (“Hillman”) (Nasdaq: HLMN), a leading provider of hardware products and merchandising solutions. This acquisition marks the entrance into rope and chain, a new product category for Hillman.
 
The Company’s 2,300 SKUs are in the complex, high-touch, rope and chain and associated hardware category which is a perfect addition to Hillman’s existing 112,000 SKU-portfolio. Koch’s customers include local and national retailers in the traditional hardware and farm and fleet channels based in the United States, and during its fiscal year ended May 31, 2023, Koch’s revenue totaled approximately $45 million. Financial terms of the transaction were not disclosed.

Koch Industries was founded by Randy and Dave Koch, entrepreneurs who have successfully built numerous companies.

Cherry Tree’s Role

Cherry Tree was engaged to advise the Company on the sale of the business. This included leading a competitive process to identify potential buyers and secure offers. Cherry Tree’s role included preparing evaluation material, communicating with target buyers, soliciting offers, negotiating terms, and supporting due diligence.

About Koch Industries, Inc.

Koch, a Minnesota based company established in 1978, is a premier provider and merchandiser of chain, rope, wire rope, hardware, load binders, cable pullers, 3-point hitch, trailer jacks and garage organization products.

While Koch was first established as a distributor of wire rope to farm stores, it successfully expanded its customer base to home improvement, hardware, and other retail market channels. In 2017, Koch Industries acquired Lehigh Consumer Products, LLC, now fully operating under Koch Industries, Inc. For more information visit www.kochmm.com

About Hillman Solutions Corp.

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman Solutions Corp. and its subsidiaries are leading North American providers of complete hardware solutions, delivered with outstanding customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & industrial customers. Leveraging its leading distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency. For more information on Hillman, visit www.hillmangroup.com.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for high quality, entrepreneurially managed growth companies, provides strategic advisory services for CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC