Horizon Global Corp., a manufacturer of branded towing and trailering equipment, has entered into a definitive agreement to acquire the Brink Group from H2 Equity Partners. The Brink Group manufactures towbars, wiring kits and towing accessories.
Headquartered in the Netherlands, with more than 75 years of towbar expertise, the Brink Group works closely with OEMs and original equipment suppliers on various programs and also serves the aftermarket channel of the towing and trailering industry. The Brink Group produces nearly 1 million towbars annually – its products can be found on approximately 25 million vehicles worldwide. The Brink Group currently operates nine facilities in eight countries around the world. The company has annual revenue of approximately $150 million.
Horizon says the addition of the Brink Group to the Horizon Global portfolio will enhance the company’s product innovation and manufacturing capabilities. After the acquisition, the combined company’s robust and respected product portfolio will more effectively serve its global customers across the OEM, OES, aftermarket and retail channels.
“We look forward to adding the Brink Group’s powerful product portfolio and manufacturing expertise to that of Horizon Global’s, and we are confident this combination will enhance our ability to better serve our customers and end-users across all markets that we serve,” said Mark Zeffiro, president and CEO of Horizon Global. “We expect the acquisition to be accretive to earnings during its first full year as part of Horizon Global through a combination of operating performance and the realization of certain synergies. The new Horizon Global will greatly benefit customers with a strengthened global platform, broader product offerings and enhanced product innovation and design expertise.”
The company is being acquired for approximately $199 million USD (€169 million) and will be financed through new long-term debt and cash on hand. The combined company will have approximately 5,300 employees, operating 67 facilities in 21 countries.
The parties expect to complete the transaction by the end of the second quarter 2018, subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals
Zeffiro added, “This significant acquisition will strengthen our global platform and give our company the reach, product offering and customer access to build on our leadership position in the OEM, OES, aftermarket and retail channels in the markets we serve. Our team has a proven ability to integrate businesses and grow both existing and newly acquired brands. We expect these efforts to improve our margin profile and increase shareholder value. We look forward to welcoming the entire Brink Group team to the Horizon Global family, and we are excited to continue serving our global customers with top-quality, innovative products.”
Jefferies LLC is serving as financial adviser to Horizon Global in the transaction, with EY providing due diligence services. Eversheds LLP is acting as the company’s legal adviser.
Houlihan Lokey is serving as financial adviser to the Brink Group in the transaction, with Deloitte Transaction Services and Roland Berger providing due diligence services. Houthoff is acting as the company’s legal adviser.
