MUNICH, Germany, August 26, 2016 /PRNewswire/ --
- Combination of two leading manufacturers of towing
systems
- Complementary acquisition will
transform global footprint
- DPE will become largest shareholder of Horizon
Global with 10%
DPE Deutsche Private Equity (DPE),
together with its co-investors, has entered into a
definitive agreement to sell Westfalia-Automotive and
Terwa to Horizon Global
(NYSE:HZN). Horizon Global is a global designer,
manufacturer and distributor of towing, trailering, cargo
management and related accessory products for original equipment,
aftermarket and retail channel customers headquartered in
Michigan, USA. The
transaction combines two leading manufacturers of towing
systems.
Very positive corporate development under DPE
ownership
In 2011, DPE acquired Westfalia-Automotive, the innovative
European leader of towbars and rear-end transport solutions, with a
vision of geographical expansion and product line extension. Since
then, DPE has executed several strategic growth initiatives,
including the acquisition of sister company Terwa in 2015 that is
central to the expansion of production capacity and strengthening
of the aftermarket footprint in Eastern
Europe, leveraging the local manufacturing cost advantage in
Romania to further improve
profitability. Capital provided by DPE also made possible the
development and launch of the latest sensor based 4th
generation of towbars.
"We are immensely proud of the achievements Westfalia-Automotive
accomplished in partnership with DPE and pleased that more than 380
jobs were created during our involvement", says DPE founding
partner Volker Hichert. Under DPE ownership, sales grew by more
than 50% to €220 million. "We thank DPE for their patronage and are
grateful for their valuable contributions and support during the
last years. The sale of Westfalia to Horizon Global is a great
outcome for our company which offers new exciting perspectives to
employees, customers and shareholders. Now, we are very much
looking forward to becoming a member of the Horizon Global family",
Bernd Welzel, Chief Executive
Officer, Westfalia-Automotive added.
Complementary acquisition will transform global
footprint
With this transaction, the Westfalia brands will gain an
expanded global reach and its products will become available to a
significantly larger customer base, enabling the continued
innovation of new technologies and products based on a global
production footprint. The combination of the companies will greatly
expand Horizon Global's OE footprint, supporting collective global
customers, and also enhancing product leadership in the aftermarket
channel. "Our company is extremely pleased to add the iconic
brands, design innovation, and manufacturing expertise of Westfalia
and Terwa to our proven global platform," said A. Mark Zeffiro, President and Chief Executive
Officer of Horizon Global.
DPE will become largest shareholder in Horizon
Global
Horizon Global intends to fund the acquisition with €89 million
in cash, €36 million in Horizon Global common stock and assumed net
debt of €42 million. With a 10% shareholding in Horizon Global, DPE
will become the largest shareholder after closing of the
transaction. Volker Hichert commented, "We are excited about the
prospect of building a relationship with Horizon Global as it moves
into the next phase of growth with the acquisition of Westfalia.
DPE has been highly active in the sector, and Horizon Global stands
for the type of company in which we seek to invest - a strong
management team, leading industry brands and global scale with this
new combination of companies representing an inflection point to
drive significant global growth and shareholder value."
Subject to customary closing conditions, completion of the
transaction is expected to occur in autumn 2016.
About DPE Deutsche Private Equity
DPE Deutsche Private Equity GmbH (DPE) is an independent German
private equity investment company investing in small and
medium-sized enterprises (SMEs) in Germany, Austria and Switzerland. DPE was founded in 2007 in Munch
by Volker Hichert and Marc Thiery
and since then has successfully launched two funds, now managing
total assets of over €600 million. Since 2007, DPE has acquired an
interest in 18 companies and invested in additional 30 add-on
acquisitions, which on average have increased their turnover by 16%
per annum. Furthermore, about 2,000 new jobs have been created
within the DPE family of companies, which currently employs more
than 7,200 staff. As an active partner, DPE helps companies to grow
by providing them with the growth capital, experience, trust,
respect and extensive support that only a family of companies like
DPE can. DPE adopts a conservative approach to financing: the
equity ratio of DPE participations is on average 80%.For more
information, please visit http://www.dpe.de
About Westfalia-Automotive
Headquartered in Rheda-Wiedenbrück, Germany, Westfalia-Automotive is one of the
worldwide leading manufacturers of towbars, wiring kits and carrier
systems for cars and light utility vehicles with an international
presence. In total, more than 1,700 different towbar types for
almost all vehicle brands are developed and produced. The company
has approximately 900 employees. For more information, please visit
http://www.westfalia-automotive.com.
About Horizon Global
Headquartered in Troy,
Michigan, Horizon Global Corporation (NYSE: HZN) is a
leading designer,
manufacturer and distributor of high-quality, custom-engineered
towing, trailering, cargo management
and related accessory products for original equipment,
aftermarket and retail channel customers on a
global basis. Our mission is to utilize forward-thinking
technology to develop and deliver best-in-class
products for our customers, engage with our employees and
realize value creation for our shareholders.
For more information, please visit
http://www.horizonglobal.com.
Media contact:
DPE Deutsche Private Equity GmbH
Tobias M. Weitzel
BSK Becker+Schreiner Kommunikation GmbH
Tel: +49-177-721-576-0
Email: weitzel@kommunikation-bsk.de
SOURCE DPE Deutsche Private Equity GmbH