Horizon Global Corp., a manufacturer of branded towing and trailering equipment, announced that the company has initiated a formal process to explore the sale of its Asia-Pacific (APAC) business segment with financial service firm Jefferies engaged to run the process.

According to a press release, 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.

President and Chief Executive Officer Carl Bizon 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 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 added, “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, according to the release. 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.