CINCINNATI, OHIO – The Hillman Companies, Inc. (“Hillman”) and Allied Capital Corporation (“Allied”) announced that a definitive agreement has been signed to sell Hillman to an affiliate of Code Hennessy & Simmons LLC (“CHS”), a Chicago-based private equity firm.

Mick Hillman, Chief Executive Officer of Hillman said, “We are about excited about our new partnership with CHS and look forward to exploring new growth opportunities with them. We remain committed to meeting the ever-changing needs of our customers through investments in our people, systems and capabilities.”

“Hillman represents an excellent investment opportunity for CHS and leverages our experience with distribution businesses,” said Peter Gotsch, a partner at Code Hennessy & Simmons LLC. “The Company is an industry leader with a strong track record of profitable growth. We look forward to working with management and the entire Hillman team to build upon the company’s successes.”

The definitive agreement places a total transaction value of approximately $510 million for the purchase of the company, including repayment of outstanding debt and the value of the company’s outstanding trust preferred shares. Consummation of the merger is subject to customary closing conditions and is anticipated to close by the end of the first quarter.

Hillman is a leading distributor of fasteners, key blanks, signage and other small hardware components and a leading manufacturer of key making equipment. The Company operates in multiple channels of the retail marketplace including national and regional home centers, hardware stores and mass merchants. Additional information about Hillman is available on the internet at www.hillmangroup.com.