Troy-based Horizon Global Corp., a manufacturer of branded towing and trailering products, today announced it will acquire Germany-based towing systems company Westfalia Group. Horizon Global intends to fund the acquisition, which is comprised of $100.5 million in cash and an assumed net debt of $47.4 million that will be refinanced through an expansion of its existing term loan.
Horizon Global will acquire the group’s brands, Westfalia-Automotive, Terwa, and Siarr, from an investor consortium led by DPE Deutsche Private Equity, which will become a shareholder of the company as part of the transaction.
At the closing, Horizon Global will become an $800 million global designer, manufacturer, and distributor of a variety of custom-engineered towing, trailering, cargo management, and other related accessory products.
“The addition of Westfalia is very complementary to our business, adding to our regional profile with new customer channels and broadened product offering,” says A. Mark Zeffiro, president and CEO of Horizon Global. “We are creating a powerful combination of companies that are established — global market leaders and innovators when it comes to designing and manufacturing towing systems for automotive equipment manufacturers, retailers, and aftermarket customers.”
He says the acquisition will position the company for accelerated growth in both revenue and profit, as it will gain a larger pan-European presence and low-cost manufacturing in Romania.
Offering more than 1,700 different types of tow bars, Westfalia, founded in 1932, holds approximately 100 tow bar patents and more than 30 transport system patents, operating facilities in 11 countries.