Addition of the Brink brand strengthens
Company’s global brand platform and broadens global product
technologies; Transaction expected to be accretive in first full
year
Management to discuss transaction during
conference call and webcast at 9:00 a.m. EST today, December 14
Horizon Global Corporation (NYSE: HZN), the world’s leading
manufacturer of branded towing and trailering equipment, announced
today that it has entered into a definitive agreement to acquire
the Brink Group from H2 Equity Partners. The Brink Group is an
industry-leading innovator and manufacturer of towbars, wiring kits
and towing accessories.
Headquartered in the Netherlands and with more than 75 years of
towbar expertise, the Brink Group works closely with original
equipment manufacturers (OEMs) and original equipment suppliers
(OESs) on various programs and also serves the aftermarket channel
of the towing and trailering industry. The Brink Group produces
nearly one million towbars annually, its products can be found on
approximately 25 million vehicles worldwide. The Brink Group
currently operates nine facilities in eight countries around the
world.
With annual revenue of approximately $150 million, the Brink
Group’s addition to the Horizon Global portfolio will enhance the
Company’s industry-leading product innovation and manufacturing
capabilities. After the acquisition, the combined company’s robust
and respected product portfolio will more effectively serve its
global customers across the OEM, OES, aftermarket and retail
channels.
“We look forward to adding the Brink Group’s powerful product
portfolio and manufacturing expertise to that of Horizon Global’s,
and we are confident this combination will enhance our ability to
better serve our customers and end users across all markets that we
serve,” said Mark Zeffiro, president and chief executive officer of
Horizon Global. “We expect the acquisition to be accretive to
earnings during its first full year as part of Horizon Global
through a combination of operating performance and the realization
of certain synergies. The new Horizon Global will greatly benefit
customers with a strengthened global platform, broader product
offerings and enhanced product innovation and design
expertise.”
Acquisition Highlights
- Positive and compelling strategic fit
for both companies in a consolidating industry
- Strength in OES channel to better
support existing global customers in the region
- Expected to be accretive to earnings
during its first full year
- Complementary regional aftermarket
presence
- Purchase price of €169 million will be
financed through new long-term debt and cash on hand
- The combined company will have
approximately 5,300 employees, operating 67 facilities in 21
countries to effectively serve its global customers
- The parties expect to complete the
transaction by the end of the second quarter 2018, subject to the
satisfaction of customary closing conditions, including receipt of
regulatory approvals
Concluded Zeffiro, “This significant acquisition will strengthen
our global platform and give our Company the reach, product
offering and customer access to build on our leadership position in
the OEM, OES, aftermarket and retail channels in the markets we
serve. Our team has a proven ability to integrate businesses and
grow both existing and newly acquired brands. We expect these
efforts to improve our margin profile and increase shareholder
value. We look forward to welcoming the entire Brink Group team to
the Horizon Global family, and we are excited to continue serving
our global customers with top-quality, innovative products.”
Jefferies LLC is serving as financial advisor to Horizon Global
in the transaction, with Ernst & Young LLP providing due
diligence services. Eversheds LLP is acting as the Company’s legal
advisor.
Houlihan Lokey is serving as financial advisor to the Brink
Group in the transaction, with Deloitte Transaction Services and
Roland Berger providing due diligence services. Houthoff is acting
as the Company’s legal advisor.
Conference Call Details
Horizon Global will host a conference call on Thursday, December
14, 2017, at 9:00 a.m. Eastern Standard Time.
Participants in the call are asked to register five to ten
minutes prior to the scheduled start time by dialing (844) 711-8052
and from outside the U.S. at (832) 900-4641. Please use the
conference identification number 3698099.
The conference call will be webcast simultaneously and in its
entirety through the Horizon Global website. An investor
presentation will also be available on the Horizon Global website
at the time of the conference call. Shareholders, media
representatives and others may participate in the webcast by
registering through the investor relations section on the Company’s
website.
A replay of the call will be available on Horizon Global’s
website or by phone by dialing (800) 585-8367 and from outside the
U.S. at (404) 537-3406. Please use the conference identification
number 3698099. The telephone replay will be available
approximately two hours after the end of the call and continue
through December 28, 2017.
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,
dealer networks, retailers, distributors, installers 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 with our employees and realize value creation for
our shareholders.
Horizon Global is home to some of the world’s most recognized
brands in the towing and trailering industry, including: Reese®,
Hayman-Reese™, Draw-Tite®, Bulldog®, Fulton®, ROLA®, Tekonsha®, and
Westfalia®. Horizon Global has approximately 4,600 employees in 58
facilities across 21 countries.
For more information, please
visit www.horizonglobal.com.
About the Brink Group
Brink Group is one of the European market leaders in towing
systems with over 75 years’ experience in the automotive sector.
Under the motto “Your Perfect Fit”, the Brink Group offers an easy
and safe connection between practically any vehicle and the load
you want to carry or tow. With this, Brink Group enables millions
of end users all over the world to go out and live their active
lives. So far, close to 25 million cars have been fitted with
a Brink towbar.
Brink Group, with its headquarters in Staphorst, the
Netherlands, has approximately 700 employees in 8 countries
and state-of-the-art manufacturing locations in the
Netherlands, France, United Kingdom and South Africa. More
information is available at www.brinkgroup.eu
Safe Harbor Statement
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 leverage; liabilities imposed by the
Company’s debt instruments; market demand; competitive factors;
supply constraints; material and energy costs; technology factors;
litigation; government and regulatory actions; 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; our ability to
successfully complete the acquisition of the Brink Group, including
the possibility that the closing conditions to the contemplated
acquisition may not be satisfied or waived; delay in closing the
proposed acquisition of the Brink Group; risks inherent in the
achievement of cost synergies and timing thereof in connection with
the Brink Group acquisition, including whether the acquisition will
be accretive; the Company’s ability to promptly and effectively
integrate the Brink Group; the performance and costs of integration
of the Brink Group; the timing and amount of repurchases of the
Company’s common stock, if any; 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: http://www.businesswire.com/news/home/20171214005504/en/
Horizon Global CorporationChristi CowdinDirector, Corporate
Communications & Investor Relations(248)
593-8810ccowdin@horizonglobal.com
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