Horizon Global Corp., one of the world’s leading manufacturers of branded towing and trailering equipment, announced the closing of the sale of its Asia Pacific (APAC) business segment to Pacific Equity Partners (PEP) for $340 million AUD (approximately $233 million USD) in cash, subject to customary closing adjustments. The company first announced plans to explore sale options in June.
Horizon Global says it plans to use the net proceeds to significantly reduce its debt and allow for increased financial flexibility.
Carl Bizon, president and CEO of Horizon Global, commented, “We would like to thank the APAC team for its contributions to Horizon Global and its leadership throughout the sale process. We believe the APAC business will continue to perform well under its new ownership.”
Bizon continued, “We view the sale process as a success, and will use a substantial portion of the net proceeds to pay down our First Lien Term Loan. We are now better positioned to accelerate our ongoing business improvement efforts in our remaining segments and, importantly, continue to provide our customers with best-in-class towing and trailering solutions.”
Andrew Charlier, 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 services to our customers.”
Jefferies LLC served as financial adviser, and Jones Day and Macpherson Kelley served as legal advisors to Horizon Global on the transaction.
