PEP to buy Horizon Global’s Asia-Pacific business segment


Pacific Equity Partners, an Australian private equity firm, has agreed to acquire Horizon Global‘s Asia-Pacific business segment. The price of the transaction is A$340 million. Horizon Global is a maker of branded towing and trailering equipment.

PRESS RELEASE

TROY, Mich.–(BUSINESS WIRE)–Horizon Global Corporation (NYSE: HZN), one of the world’s leading manufacturers of branded towing and trailering equipment, announced today that the Company has entered into a definitive agreement to sell its Asia-Pacific (APAC) business segment to Pacific Equity Partners (PEP) for AUD $340 million in cash, subject to customary closing adjustments. The Company intends to use the proceeds from the sale to significantly reduce its debt and bolster its liquidity, allowing for additional financial flexibility.

Upon completion of the sale and subsequent retirement of debt, Horizon Global intends to pursue a full or partial refinancing of its remaining secured debt. If successful, it is expected that this refinancing would close in the fourth quarter of 2019.

Carl Bizon, President and Chief Executive Officer of Horizon Global, commented, “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.

Bizon continued, “We would like to thank our dedicated APAC team as it worked tirelessly throughout the process to continue to service our customers and perform to the standards to which they are accustomed. Our APAC business segment is an exceptional business with strong leadership positions in the markets it serves. We believe the business will continue to thrive and serve its customers as they have come to expect, making the business a valued part of PEP’s portfolio.”

Andrew Charlier, a Managing Director of PEP, added, “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 transaction is subject to the satisfaction of customary closing conditions and is expected to close before the end of the third quarter of 2019.

Jefferies LLC is serving as financial advisor to Horizon Global in the transaction.

About Horizon Global
Horizon Global is the #1 designer, manufacturer and distributor of a wide variety of high-quality, custom-engineered towing, trailering, cargo management and other related accessory products in North America, Australia and Europe. The Company serves OEMs, retailers, dealer networks and the end consumer as the category leader in the automotive, leisure and agricultural market segments. Horizon provides its customers with outstanding products and services that reflect the Company’s commitment to quality, innovation and operational excellence. The Company’s mission is to utilize technology to develop and deliver best-in-class products with superior on-time performance for our customers, engage our employees and create value for our shareholders.
Horizon Global is home to some of the world’s most recognized brands in the towing and trailering industry, including: BULLDOG, Draw-Tite, Fulton, Hayman Reese, Reese, ROLA, Tekonsha, and Westfalia. Horizon Global has approximately 4,200 employees in 37 facilities across 18 countries.
For more information, please visit www.horizonglobal.com.

About PEP
Founded in 1998, Pacific Equity Partners (PEP) is a leading Australian private equity firm with over A$4.5 billion in funds currently under management. The team provides strategic management experience and capital resources to generate sustainable value within the PEP Funds’ operating companies through a focus on supporting management to drive operational improvement and realise additional growth opportunities. Funds advised by PEP have completed over 30 platform acquisitions and over 100 bolt-on acquisitions across a broad range of industries. PEP has been the recipient of a number of awards in recent years, including Firm of the Year, Best LBO Deal of the Year and Private Equity Firm of the Year.

Further information on PEP and its operating companies can be found at www.pep.com.au.