Horizon Global Announces Review of Strategic Alternatives
August 08 2022 - 5:45PM
Business Wire
Horizon Global Corporation (NYSE: HZN), one of the world’s
leading manufacturers of branded towing and trailering equipment,
today announced that the Company’s Board of Directors has
authorized the review of strategic alternatives to enhance
shareholder value. Such strategic alternatives could involve a sale
of a portion or the entirety of the business.
“Our objective is to maximize shareholder value,” stated Horizon
Global’s Board Chair John C. Kennedy. “We have received inbound
interest in the Company and, given this level of interest, the
Board has made the decision to review strategic alternatives. We
believe there is significant value tied to our best-in-class
products, iconic brands and deep customer relationships.”
The Company noted that there can be no assurance that the
Board's review process will result in any transaction or other
alternative. There is no set timetable for the strategic review
process and Horizon Global does not intend to provide updates
unless or until the Board approves a specific action or otherwise
determines that disclosure is appropriate or necessary.
Jefferies LLC is serving as Horizon Global’s financial
advisor.
About Horizon Global
Headquartered in Plymouth, MI, Horizon Global is a leading
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,
Europe and Africa. The Company serves automotive original equipment
manufacturers, 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 premium products for our customers, engage with
our employees and create value for our shareholders.
Horizon Global maintains a collection of regionally recognized
brands in the towing and trailering industry, including: Draw-Tite,
Reese, Westfalia, BULLDOG, Fulton and Tekonsha. Horizon Global has
approximately 3,800 employees.
For more information, please visit www.horizonglobal.com.
Forward-Looking
Statements
This release may contain “forward-looking statements” as defined
in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements 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 impact
of the COVID-19 pandemic on the Company’s business, results of
operations, financial condition and liquidity, including, without
limitation, supply chain and logistics issues and inflationary
pressures; interest rate volatility; liabilities and restrictions
imposed by the Company’s debt instruments, including the Company’s
ability to comply with the applicable financial covenants related
thereto or obtain any necessary amendments or waivers with respect
to such financial covenants; market demand; competitive factors;
supply constraints and shipping disruptions; material, logistics
and energy costs, including the increased material costs resulting
from the COVID-19 pandemic; inflation and deflation rates; the
impact the conflict between Russia and Ukraine has on our business,
financial condition or future results, including the duration and
scope of such conflict, its impact on disruptions and
inefficiencies in our supply chain and our ability to procure
certain raw materials, as well as on our energy supply in Europe;
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, including recessionary conditions; various
conditions specific to the Company’s business and industry; the
success of the Company’s action plan, including the actual amount
of savings and timing thereof; the success of the Company’s
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; factors affecting the Company’s
business that are outside of its control, including natural
disasters and severe weather conditions (including those caused by
climate change), pandemics, including the current COVID-19
pandemic, accidents and governmental actions; our ability to regain
and remain in compliance with the New York Stock Exchange’s
(“NYSE”) minimum market capitalization requirement; and other risks
that are discussed in Part I, Item 1A, “Risk Factors.” in the
Company’s Annual Report on Form 10-K for the twelve months ended
December 31, 2021. The risks described in the Company’s Annual
Report on Form 10-K 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.
The cautionary statements set forth above should be considered
in connection with any subsequent written or oral forward-looking
statements that we or persons acting on our behalf may issue. We
caution readers not to place undue reliance on forward-looking
statements, which speak only as of the date of this release. New
risks and uncertainties arise from time to time, and it is
impossible for us to predict these events or how they may affect
the Company. 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 of this release or to reflect the
occurrence of unanticipated events, except as otherwise required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220808005804/en/
Jeff Tryka, CFA Investor Relations, Lambert & Co. (616)
295-2509 jtryka@horizonglobal.com
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