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Horizon Global Completes Sale of Asia Pacific Business Segment

HZN

TROY, Mich.

Net Proceeds to be Used to Significantly Reduce Debt

Horizon Global Corporation (NYSE: HZN), the world’s leading manufacturer of branded towing and trailering equipment, announced the closing of the sale of the Company’s Asia Pacific (APAC) business segment to Pacific Equity Partners (PEP) for AUD $340 million (approximately USD $233 million) in cash, subject to customary closing adjustments. Horizon Global will use the net proceeds to significantly reduce its debt and allow for increased financial flexibility.

Carl Bizon, President and Chief Executive Officer of Horizon Global, commented, “We would like to thank the APAC team for its contributions to Horizon Global and its leadership throughout the sale process. We believe the APAC business will continue to perform well under its new ownership.”

Bizon continued, “We view the sale process as a success, and will use a substantial portion of the net proceeds to pay down our First Lien Term Loan. We are now better positioned to accelerate our ongoing business improvement efforts in our remaining segments and, importantly, continue to provide our customers with best-in-class towing and trailering solutions.”

Andrew Charlier, Managing Director of PEP, added, “APAC is led by an outstanding management team and has a track record of developing innovative products and solutions for its customers. We are excited to support management by investing in product development, geographical expansion, and the potential acquisition of additional brands in order to continue to deliver quality products and services to our customers.”

Jefferies LLC served as financial advisor, and Jones Day and Macpherson Kelley served as legal advisors to Horizon Global on the transaction.

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.

About PEP

Founded in 1998, Pacific Equity Partners (PEP) is a leading Australian private equity firm with over A$4.5 billion in funds currently under management. The team provides strategic management experience and capital resources to generate sustainable value within the PEP Funds’ operating companies through a focus on supporting management to drive operational improvement and realize additional growth opportunities. Funds advised by PEP have completed over 30 platform acquisitions and over 100 bolt-on acquisitions across a broad range of industries. PEP has been the recipient of a number of awards in recent years, including Firm of the Year, Best LBO Deal of the Year and Private Equity Firm of the Year.

Further information on PEP and its operating companies can be found at www.pep.com.au.

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; the Company’s ability to meet its covenants in the agreements governing its debt, or obtain any amendments or waivers thereto; the Company’s ability to successfully refinance all or a portion of its secured debt; the Company’s ability to regain compliance with the NYSE’s continued listing standards and maintain such compliance; 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, 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 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.

Jeff Tryka, CFA
Investor Relations
(616) 295-2509
jtryka@horizonglobal.com





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