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Hillman Expands Cleaning Product Line With Intex DIY Buyout

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Hillman Solutions Corp.'s (HLMN - Free Report) subsidiary, Big Time Products, LLC, acquired Intex DIY, Inc., a supplier of wiping cloths and cleaning textiles. This marks the company’s second acquisition in 2024 and supports its long-term growth strategy focused on expanding in adjacent markets.

The move strengthens Hillman's position in the cleaning products category. HLMN currently offers a wide range of gloves to customers across North America. Intex, with its extensive range of cleaning products, will complement Hillman's existing portfolio. This acquisition will allow HLMN to leverage its distribution network to introduce and service this new product line.

The acquisition expands its Protective Solutions (PS) business, which includes well-known work glove brands such as Firm Grip, Gorilla Grip, Grease Monkey, AWP and Digz. HLMN recently partnered with Kontoor Brands to introduce work gloves under the Wrangler brand, set to launch in 2025.

Intex DIY, known for its patented and innovative cleaning products, is expected to contribute approximately $55 million in annual revenues in 2024. This addition is anticipated to enhance Hillman’s offerings in the cleaning and protective solutions markets.

Price Performance

Shares of HLMN have moved up 6% in the past three months compared with the Zacks Building Products - Miscellaneous industry’s 7.5% rise. The company is poised to benefit from accretive, low-risk acquisitions and robust product innovation. It expects EBITDA growth from natural synergies and additional top-line growth through its in-store service team and direct store delivery model.

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Despite a flat overall net sales of $379.4 million in second-quarter 2024, the company saw a 3.5% year-over-year increase in net sales for its Hardware and Protective Solutions (HPS) segment. Hardware sales grew by 2.7%, driven by new business wins and Koch acquisition, though market pricing partially offset gains. PS segment experienced a 7.7% year-over-year increase, fueled by new business wins and strong promotional activity, more than offsetting a challenging market.

Hillman anticipates its patented products to drive new business wins and growth beyond historical rates. Earnings estimates for 2024 have moved up to 52 cents from 45 cents in the past 30 days, indicating 26.8% year-over-year growth.

Zacks Rank & Key Picks

Hillman currently carries a Zacks Rank #3 (Hold).

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The Zacks Consensus Estimate for WMS’ fiscal 2025 sales and EPS indicates growth of 4.7% and 12.4%, respectively, from the prior-year reported levels.

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