Horizon Global Corp. — manufacturer of branded towing and trailering equipment, including Draw-Tite, Reese and Bulldog products — has engaged Jefferies LLC to explore the sale of its Asia-Pacific (APAC) business segment.
There is no assurance that the process 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.”
Expected proceeds from the sale of APAC would result in a significant reduction of Horizon Global’s debt, according to management, and allow it to focus on the core Americas segment as well as business improvement initiatives underway in the Europe-Africa segment.
Horizon Global President and CEO Carl Bizon called APAC “an exceptional business” 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,” Bizon explained. “We also believe the business would continue to thrive and serve its customers very well under new ownership.”
He added: “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.”