Horizon Global to offload APAC towing and trailering equipment business
US-based Horizon Global, a manufacturer of towing and trailering equipment, has agreed to divest its Asia-Pacific (APAC) business segment to Pacific Equity Partners for AUD 340 million in cash.
Horizon Global plans to use the cash from the sale of the towing and trailering equipment business in APAC to bring down its debt significantly and boost its liquidity, thereby enabling additional financial flexibility.
The Michigan-based company designs, manufactures and distributes a range of custom-engineered towing, trailering, cargo management and other associated accessory products in North America, Australia, and Europe.
Horizon Global, which caters to OEMs, dealer networks, retailers, and the end consumer, owns towing and trailering brands such as BULLDOG, Draw-Tite, Fulton, ROLA, Tekonsha, Hayman Reese, Reese, and Westfalia. The company has nearly 4,200 employees across 37 facilities in 18 countries.
Horizon Global to sell its APAC towing and trailering equipment business to Pacific Equity Partners. Image by Free-Photos from Pixabay.
Carl Bizon – President and CEO of Horizon Global, commenting on the sale of the towing and trailering equipment business, said: “We are pleased with the outcome of the sale process. While the proceeds from this sale will allow us to satisfy the $100 million prepayment obligation under our First Lien Term Loan, we expect to make additional debt repayments substantially in excess of this amount.
“This transaction also simplifies our operating structure, allowing us to deepen our focus on our remaining operating segments, which we believe can be restored to historical profitability levels.
The deal, which is subject to the satisfaction of customary closing conditions, is anticipated to be wrapped up by the end of Q3 2019.
Andrew Charlier – a Managing Director of Pacific Equity Partners, commenting on the acquisition of the towing and trailering equipment business in APAC, said: “APAC is led by an outstanding management team and has a track record of developing innovative products and solutions for its customers.
“We are excited to support management by investing in product development, geographical expansion, and the potential acquisition of additional brands in order to continue to deliver quality products and service to our customers.”
The financial advisor for Horizon Global in the transaction is Jefferies.