Why This Matters to Distributors: Hillman is increasingly looking beyond retail hardware aisles and into wholesale distribution channels, signaling greater competition and acquisition activity across specialty distribution, lumber and building materials, and industrial MRO markets.
The Hillman Group is expanding its focus on wholesale distribution and industrial markets as the fastener and hardware supplier seeks new growth opportunities beyond its traditional retail business.
In a June investor presentation, Hillman identified pro distribution, specialty distribution and industrial maintenance, repair, and operations (MRO) markets as key components of its long-term growth strategy. The company said it plans to pursue both organic growth and acquisitions to expand its presence on those channels.
Hillman generated $1.55 billion in net sales during 2025, up 5.4% from $1.47 billion in 2024. Adjusted EBITDA increased 13.9% to $275.3 million. The company’s Hardware & Protective segment, which includes fasteners, builders’ hardware, anchors, rope and chain, and work gear, accounted for $1.2 billion of revenue.
Historically known for supplying products to retailers such as Ace Hardware, Lowe’s, Home Depot, Tractor Supply Co., Menards and Walmart, Hillman is increasingly positioning itself to serve professional contractors and distributors. The company estimates it generated $460 million in revenue tied to professional end markets in 2025, including $210 million through pro distribution channels and $35 million through industrial customers.
Hillman estimates the addressable market for pro distribution at $9.5 billion and the industrial MRO market at about $2 billion. The company said it currently holds about 3% of the pro distribution market and 2% share of the industrial market based on its current capabilities and 2025 revenue.
The company plans to grow through three primary channels.
The first is expanding sales to professional contractors through retail partners’ pro-focused businesses. Hillman reported approximately $215 million in retail pro revenue during 2025 and said major retail customers continue investing in contractor-focused programs and job site services.
The second is specialty distribution. Hillman said it already generates approximately $100 million in specialty trade fastener sales and intends to deepen relationships with specialty distributors serving construction and building-product markets. The presentation highlighted distributors operating in drywall, roofing, siding, exterior building products, and related trades as examples of target markets.
The third is lumber and building materials distribution. Hillman said it currently serves approximately 3,500 lumber and building materials customers and generates about $100 million in annual revenue from that channel. The company plans to pursue larger-volume sales of fasteners, hardware and protective products used in contractors and job site applications.
Acquisitions are expected to play a significant role in the strategy.
Hillman said future acquisitions will focus on distributors and manufacturers that can expand their product portfolio, increase their share of customer spending, and strengthen their position in professional and industrial channels. The company also intends to pursue industrial distribution opportunities through what it described as a master distributor model.
The strategy follows Hillman’s acquisition of Koch Industries’ rope and chain business in 2026. According to the company, the acquisition expanded its position in an adjacent product category and was integrated into Hillman’s broader supply chain network.
Hillman operates 27 distribution and manufacturing facilities across North America, manages approximately 111,000 SKUs and supplies products to 29,000 retail locations. The company said it reaches approximately 97% of U.S. customers within two days and maintains average order fill rates near 98%.
Looking ahead, Hillman is targeting annual revenue growth of 8% to 12% and has set a goal of increasing annual revenue to approximately $2.5 billion by 2030. The company identified pro distribution, industrial MRO, new category expansion, and acquisitions as major drivers of that growth plan.
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