ORIX said its U.S. arm had signed a non-binding memorandum to acquire a majority of Hilco, an Illinois firm known for asset valuation, restructuring advice and asset-based lending. The binding agreement signed on July 3 set the price at $776 million for 71.4% of the equity. Hilco's management kept a minority stake. The deal Paying $776 million for 71.4% implies a value of about $1.09 billion for all of Hilco's equity. Hilco's executive team kept the remaining 28.6%. Davis Polk & Wardwell was legal counsel to ORIX USA. J.P. Morgan Securities was Hilco's financial adviser, and Kirkland & Ellis and Greenberg Traurig were its legal counsel. In Japan, ORIX's disclosure named the target entity as Hilco Trading, LLC. About Hilco Jeffrey Hecktman founded the company in 1987 as Hilco Trading Company, and it was renamed Hilco Global in 2013. It has more than 770 employees worldwide. Its work covers valuation, monetization of assets such as inventory, equipment, real estate, brands and intellectual property, restructuring and advisory services, and capital solutions including asset-based lending and principal investing. Strategy and integration ORIX USA said Hilco's valuation, advisory and asset-based lending skills would complement its middle-market credit platform, and the deal set up a new asset-based lending division. After closing, Hilco was reorganized into two divisions. Professional Services handles valuation and advisory work, and Capital Solutions is an asset-management arm that is to expand investing, especially in asset-based private credit. Hecktman stayed on as chief executive, and Hilco now operates as a subsidiary of ORIX USA. ORIX USA President and CEO Terry Suzuki said Hilco fits closely with the ORIX USA team.
