Company Considering Various Alternatives to Reduce Debt
TROY, Mich.–(BUSINESS WIRE)–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.
Contacts
Christi Cowdin
Director, Corporate Communications & Investor
Relations
(248) 593-8810
[email protected]
