Horizon Global Announces Agreement to Acquire Westfalia-Automotive and Terwa

Addition of Westfalia, Terwa and Siarr businesses represents a
compelling strategic opportunity that will provide scale in Europe and
enhance global footprint

Management to discuss transaction during conference call and webcast
at 9:00 a.m. EDT, August 25

TROY, Mich.–(BUSINESS WIRE)–Horizon Global Corporation (NYSE: HZN), one of the world’s leading
manufacturers of branded towing and trailering equipment, announced
today that it has entered into a definitive agreement to acquire
Westfalia-Automotive and Terwa, collectively referred to as the
Westfalia Group (Westfalia), a leading global towing company. As part of
the transaction, Horizon Global will acquire the market-leading brands,
Westfalia, Terwa and Siarr from an investor consortium led by DPE
Deutsche Private Equity, which will become a shareholder of Horizon
Global as part of the transaction. The combination will create a
stronger company which will be well-positioned for accelerated growth in
both revenue and profit, as it gains a larger pan-European presence and
low-cost manufacturing in Romania.

Westfalia is the inventor of the European ball towbar and has been
manufacturing and marketing high-quality branded towing products since
1932. Offering more than 1,700 different types of towbars, Westfalia is
headquartered in Rheda-Wiedenbrück, Germany. Westfalia holds
approximately 100 towbar patents and more than 30 transport system
patents, operating facilities in 11 countries.

Acquisition Highlights

  • Acquisition will position Horizon Global as the leading manufacturer
    of towing and trailering equipment in Europe.
  • Combination of the companies will greatly expand the global OE
    footprint supporting collective global customers. Horizon Global’s
    aftermarket position in Europe will be greatly enhanced by the product
    leadership that will be brought to this channel.
  • Transaction enables Horizon Global to accelerate margin expansion,
    drive significant earnings and better serve existing markets and
  • Horizon Global brands will benefit from the advanced technology and
    product innovations of Westfalia.
  • At close, Horizon Global will become an approximately $800 million
    global designer, manufacturer and distributor of a wide variety of
    high quality, custom-engineered towing, trailering, cargo management
    and other related accessory products.
  • Purchase price multiple of approximately 9.9x Westfalia Group’s
    projected 2016 adjusted EBITDA. Cost and structure synergies achieved
    as a result of the integration of this deal are anticipated to result
    in less than a 4.0x adjusted EBITDA purchase price multiple in three
  • Acquisition will be accretive in 2017 and will provide significant
    earnings per share accretion in future years.
  • The parties expect to complete the transaction during the fourth
    quarter of 2016, subject to the satisfaction of customary closing

“Our company is extremely pleased to add the iconic brands, design
innovation, and manufacturing expertise of Westfalia to our proven
global platform,” said A. Mark Zeffiro, President and Chief Executive
Officer of Horizon Global. “The addition of Westfalia is very
complementary to our business, adding to our regional profile with new
customer channels and broadened product offering. As part of this
transaction, we are also pleased to welcome DPE Deutsche Private Equity
as a shareholder. We are creating a powerful combination of companies
that are established, global market leaders and innovators when it comes
to designing and manufacturing towing systems for automotive equipment
manufacturers, retailers and aftermarket customers.”

Volker Hichert, founding partner at DPE Deutsche Private Equity,
commented, “We are excited about the prospect of building a relationship
with Horizon Global as it moves into the next phase of growth with the
acquisition of Westfalia. DPE has been highly active in the sector, and
Horizon Global stands for the type of company in which we seek to invest
– a strong management team, leading industry brands and global scale
with this new combination of companies representing an inflection point
to drive significant global growth and shareholder value.”

Concluded Zeffiro, “This significant acquisition will be a very positive
statement regarding the strength of our company and our confidence in
our ability to grow both existing and newly acquired brands around the
world. We are pleased to welcome the entire Westfalia team to the
Horizon Global family. This transaction promises to deliver significant
opportunities for future growth and meaningful earnings accretion that
will generate an attractive return for all Horizon Global shareholders.”

Horizon Global intends to fund the acquisition, comprised of
approximately €89 million cash and assumed net debt of €42 million,
which will be refinanced, through an expansion of its existing term
loan. In addition, €36 million in Horizon Global common stock will be
issued to the sellers.

Wells Fargo Securities is serving as financial advisor to Horizon Global
in the transaction, with Ernst & Young LLP providing due diligence
services. Eversheds LLP and Jones Day are acting as the Company’s legal
advisors. JPMorgan is lead arranger of the expansion of the existing
term loan.

Conference Call and Webcast Information

Horizon Global will host a conference call on Thursday, August 25, 2016,
at 9:00 a.m. Eastern Time. Participants on the call are asked to
register five to 10 minutes prior to the scheduled start time by dialing
(844) 711-8052 and from outside the U.S. at (832) 900-4641. Please use
the conference identification number 70199564. The conference call will
be webcast simultaneously, and in its entirety, through the Horizon
Global website. Shareholders, media representatives and others may
participate in the webcast by registering through the Investor Relations
section on the Company’s website. The presentation will also be
available on the Company’s website at www.horizonglobal.com.

A replay of the call will be available on Horizon Global’s website or by
phone by dialing (800) 585-8367 and from outside the U.S. at (404)
537-3406. Please use the conference identification number 70199564. The
telephone replay will be available approximately two hours after the end
of the call and continue through September 1, 2016.

About Horizon Global

Headquartered in Troy, Michigan, Horizon Global Corporation (NYSE: HZN)
is a leading designer, manufacturer and distributor of high-quality,
custom-engineered towing, trailering, cargo management and related
accessory products for original equipment, aftermarket and retail
channel customers on a global basis. Our mission is to utilize
forward-thinking technology to develop and deliver best-in-class
products for our customers, engage with our employees and realize value
creation for our shareholders. For more information, please visit www.horizonglobal.com.

About Westfalia-Automotive

Headquartered in Rheda-Wiedenbrück, Germany, Westfalia-Automotive is one
of the worldwide leading manufacturers of towbars, wiring kits and
carrier systems for cars and light utility vehicles with an
international presence. In total, more than 1,700 different towbar types
for almost all vehicle brands are developed and produced. The company
has approximately 900 employees.

About DPE Deutsche Private Equity

DPE Deutsche Private Equity GmbH (DPE) is an independent German private
equity investment company investing in small and medium-sized
enterprises (SMEs) in Germany, Austria and Switzerland. Since its
foundation in 2007, DPE successfully launched two funds with total
assets of over €600 million and invested in 18 companies. For more
information, please visit http://www.dpe.de.


This presentation may contain “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, risks and uncertainties
with respect to: 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; the Company’s accounting policies;
future trends; general economic and currency conditions; various
conditions specific to the Company’s business and industry; our ability
to successfully complete the acquisition of Westfalia, including the
possibility that the closing conditions to the contemplated transaction
may not be satisfied or waived; delay in closing the proposed
transaction; risks inherent in the achievement of cost synergies and the
timing thereof, including whether the proposed acquisition will be
accretive and within the expected timeframe; risks related to the
disruption of the transaction to Westfalia and its management; the
effect of announcement of the transaction on Westfalia’s ability to
retain and hire key personnel and maintain relationships with customers,
suppliers and other third parties; our ability to promptly and
effectively integrate the acquisition of Westfalia; the performance and
costs of integration of Westfalia; 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.


Horizon Global Corporation
Maria C. Duey
Vice President,
Corporate Development & Investor Relations
(248) 593-8810