Horizon Global Corp. in Troy Selling Asia-Pacific Segment to Australia’s Pacific Equity Partners

Troy’s Horizon Global Corp., a manufacturer of branded towing and trailering equipment, announced it has entered into a definitive agreement to sell its Asia-Pacific business segment to Pacific Equity Partners in Australia for more than $230 million in cash. Details of the deal were not disclosed.
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Horizon Global Corp. sign
Horizon Global Corp. in Troy has agreed to sell its Asia-Pacific business segment to Pacific Equity Partners. // Photo courtesy of Horizon Global Corp.

Troy’s Horizon Global Corp., a manufacturer of branded towing and trailering equipment, announced it has entered into a definitive agreement to sell its Asia-Pacific business segment to Pacific Equity Partners in Australia for more than $230 million in cash. Details of the deal were not disclosed.

The company intends to use the proceeds to reduce its debt and bolster its liquidity. Upon completion of the sale and subsequent retirement of debt, Horizon Global plans 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.

“We are pleased with the outcome of the sale process,” says Carl Bizon, president and CEO of Horizon Global. “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 transaction is expected to close before the end of the third quarter.

“APAC is led by an outstanding management team and has a track record of developing innovative products and solutions for its customers,” says Andrew Charlier, a managing director of Pacific Equity Partners. “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.”

Jefferies LLC is serving as financial adviser to Horizon Global.

Horizon Global designs, manufactures, and distributes custom engineered towing, trailering, cargo management, and other related accessory products in North America, Australia, and Europe.

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