Horizon Global Corp., a supplier of branded towing and trailering equipment, announced today (Dec. 14) that it has entered into a definitive agreement to acquire the Brink Group from H2 Equity Partners. According to a press release, the Brink Group manufactures tow bars, wiring kits and towing accessories.
Headquartered in the Netherlands with more than 75 years of tow bar expertise, the Brink Group works with OEMs) and suppliers on various programs and also serves the aftermarket channel of the towing and trailering industry. The Brink Group produces nearly one million tow bars annually. 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 product portfolio will more effectively serve its global customers across the OEM, supplier, 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.”
Details of the acquisition include:
• Purchase price of $200 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.
Zeffiro noted, “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.”