Horizon Global Announces Agreement To Sell Asia-Pacific Business Segment

Horizon Global Announces Agreement To Sell Asia-Pacific Business Segment

Proceeds of the sale will be used to significantly reduce debt, the company says.

Horizon Global Corp., one of the world’s leading manufacturers of branded towing and trailering equipment, 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 said it 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 CEO 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.

“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 adviser to Horizon Global in the transaction.

You May Also Like

SKF Aims to Eliminate Greenhouse Gas Emissions 

SKF joined and co-funded Mission 0 to help deliver solutions to eliminate GHG emissions in materials, production and end-of-life of passenger cars.

SKF Aims to Eliminate Greenhouse Gas Emissions 

SKF announced it has joined and co-funded Mission 0 to help develop groundbreaking technologies and deliver solutions to eliminate greenhouse gas (GHG) emissions in materials, production and end-of-life of passenger cars. In an initial pilot project, SKF said it will collaborate with academia and industry experts in a research arena to solve GHG emissions in materials and processes that require new knowledge or disruptive technologies.

Polestar Performance SUVs on Display in New York

The Polestar 3 and Polestar 4 will be showcased at the NY International Auto Show for the first time.

Polestar Performance SUVs on Display in New York
Corteco Strengthens Expansion in Southeast Europe

Freudenberg Sealing Technologies’ aftermarket unit opens a warehouse in Turkey and a sales office in Serbia.

Corteco Strengthens Ambitions in Southeast Europe
Marelli Presents New Interior Innovation Center

The location is implementing three key initiatives inspired by the theme, “What’s next? Innovation for the new era.” 

Marelli presents its new Interior Innovation Center
Analysis: Post-Covid Years for Expats, Int’l. Business Travelers

Allen Koski discusses how artificial intelligence is affecting global healthcare trends, among other topics.

Analysis: Post-Covid Years for Expats, Int'l. Business Travelers

Other Posts

Yokohama to Build New Tire Plant in Mexico

The facility is set to begin production in early 2027, with a planned annual output of 5 million tires. 

Yokohama Tire Plant Mexico
Gogoro Partners with Copec on Battery Swapping

Copec is developing a Latin American network of battery-swapping stations for launch at its service stations.

Hyundai Motor, Iveco Group Partner on Electric H-D Trucks

They signed a Letter of Intent on March 14, reinforcing their partnership on electric heavy-duty truck solutions in European markets.

Hyundai Motor, Iveco Group Partner on Electric H-D Trucks
ADS-TEC Energy Announces New Board Appointment

Newly appointed Dr. Andreas Fabritius has served as a partner at global law firm Freshfields Bruckhaus Deringer for the past 30 years.

ADS-TEC Energy Announces New Board Appointment