Handy Hardware Wholesale is scheduled to be purchased by Littlejohn & Co pending official court approval in July.
Handy Hardware Wholesale, which is based in Houston, filed for bankruptcy in Delaware in January and as part of the Chapter 11 filing, has been exploring reorganization options since.
Under the acquisition, Handy would emerge from bankruptcy and maintain the Handy Hardware brand; however, the company would become a private company—no longer member owned.
Littlejohn also owns Howard Berger Co, Installed Building Products among the 14 companies in its current portfolio.
Part of the strategy of private equity firms to purchase distressed companies, help turn them over and then sell them within a short period of time. Littlejohn’s records show turnover years ranging from two to seven.
Be sure to check out next week’s story for more details and feedback from current Handy members.