Horizon Global Initiates Process to Explore Sale of Its Asia-Pacific Segment
June 07 2019 - 8:30AM
Business Wire
Company Considering Various Alternatives to
Reduce Debt
Horizon Global Corporation (NYSE: HZN), the world’s leading
manufacturer of branded towing and trailering equipment, announced
today that the Company has initiated a formal process to explore
the sale of its Asia-Pacific (“APAC”) business segment, with
Jefferies engaged to run the process. The expected proceeds from
the sale of APAC would result in a significant reduction of the
Company’s debt, while allowing the management team to focus on the
core Americas segment and the business improvement initiatives
underway in the Europe-Africa segment.
Carl Bizon, President and Chief Executive Officer of Horizon
Global, commented, “Our APAC segment is an exceptional business
with a great team of employees that operates as a nearly
stand-alone business. While we think the business has attractive
growth prospects, we are laser-focused on reducing our current debt
burden, and a potential sale of APAC is one of a variety of
initiatives we are considering to achieve this objective. We also
believe the business would continue to thrive and serve its
customers very well under new ownership.”
Bizon concluded, “As we pursue various alternatives to reduce
our debt, we continue to focus on our core Americas business and
the ongoing business improvement initiatives in Europe-Africa. With
a stronger balance sheet and a deep focus on our remaining
segments, we expect to restore the profitability of Horizon Global
to historical levels and maximize value for our shareholders.”
There is no assurance that the process to explore the sale of
the APAC segment or other debt reduction alternatives under
consideration will result in any transaction or the adoption of any
other strategic alternative. The Company does not intend to comment
further regarding the process unless or until a definitive
transaction agreement is reached, another strategic alternative is
approved by Horizon Global’s Board of Directors, or the Board
determines to conclude the process.
About Horizon Global
Horizon Global is the #1 designer, manufacturer and distributor
of a wide variety of high-quality, custom-engineered towing,
trailering, cargo management and other related accessory products
in North America, Australia and Europe. The Company serves OEMs,
retailers, dealer networks and the end consumer as the category
leader in the automotive, leisure and agricultural market segments.
Horizon provides its customers with outstanding products and
services that reflect the Company's commitment to market
leadership, innovation and operational excellence. The Company’s
mission is to utilize forward-thinking technology to develop and
deliver best-in-class products for our customers, engage our
employees and create value for our shareholders. Horizon Global is
home to some of the world’s most recognized brands in the towing
and trailering industry, including: BULLDOG, Draw-Tite, Fulton,
Hayman Reese, Reese, ROLA, Tekonsha, and Westfalia. Horizon Global
has approximately 4,200 employees in 37 facilities across 18
countries. For more information, please
visit www.horizonglobal.com.
Forward-Looking
Statements
This release contains “forward-looking statements” as defined in
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements contained herein speak only as of the
date they are made and give our current expectations or forecasts
of future events. These forward-looking statements can be
identified by the use of forward-looking words, such as “may,”
“could,” “should,” “estimate,” “project,” “forecast,” “intend,”
“expect,” “anticipate,” “believe,” “target,” “plan” or other
comparable words, or by discussions of strategy that may involve
risks and uncertainties. These forward-looking statements are
subject to numerous assumptions, risks and uncertainties which
could materially affect our business, financial condition or future
results including, but not limited to, risks and uncertainties with
respect to: the Company’s ability to regain compliance with the
NYSE’s continued listing standards and maintain such compliance;
the Company’s leverage and its ability to reduce its debt; the
Company’s ability to successfully complete the sale of its APAC
segment of the business; liabilities imposed by the Company’s debt
instruments; the Company’s ability to meet its covenants in the
agreements governing its debt, including the requirement to reduce
its first lien term loan, or obtain any amendments or waivers
thereto; market demand; competitive factors; supply constraints;
material and energy costs; technology factors; litigation;
government and regulatory actions, including the impact of any
tariffs, quotas or surcharges; the Company’s accounting policies;
future trends; general economic and currency conditions; various
conditions specific to the Company’s business and industry; the
spin-off from TriMas Corporation; the success of our Action Plan,
including the actual amount of savings and timing thereof; the
success of our business improvement initiatives in Europe-Africa,
including the amount of savings and timing thereof; the Company's
exposure to product liability claims from customers and end users,
and the costs associated therewith; and other risks that are
discussed in the Company’s most recent Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. The
risks described herein are not the only risks facing our Company.
Additional risks and uncertainties not currently known to us or
that we currently deemed to be immaterial also may materially
adversely affect our business, financial position and results of
operations or cash flows. We caution readers not to place undue
reliance on such statements, which speak only as of the date
hereof. We do not undertake any obligation to review or confirm
analysts’ expectations or estimates or to release publicly any
revisions to any forward-looking statement to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
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version on businesswire.com: https://www.businesswire.com/news/home/20190607005221/en/
Christi CowdinDirector, Corporate Communications & Investor
Relations(248) 593-8810ccowdin@horizonglobal.com
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