PEP to acquire APAC business of US-based Horizon

Horizon specializes in the design, manufacture and distribution of towing, trailering and cargo management products. Customers include car makers, dealers and end-customers in the automotive and agricultural vehicle industries.

The New York-listed company said it planned to use capital from the deal to reduce debt and simplify its operating structure. The company is said to have struggled in recent years due to a lower-than-expected profit contribution from two European acquisitions. The stock spiked 30% prior to confirmation of the transaction, reaching $3.81, and last closed at $3.50. This compares to a historical range of $6-25 from mid-2015 to mid-2018.

The Asia Pacific division includes manufacturing facilities in Thailand, Australia, and New Zealand and represents about 15% of the global business. APAC sales grew 7% during 2018 to $136 million, with the company noting improved transaction volumes in Australia and Thailand. Profit improved 8% on the year to $20.2 million. Group sales declined slightly to about $850 million, while the overall loss expanded from $3.5 million in 2017 to $204 million at the end of 2018.

“APAC is led by an outstanding management team and has a t rack record of developing innovative products and solutions for its customers,” Andrew Charlier, a managing director at PEP, said in a statement. “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 service to our customers.”

Horizon products include trailer hitches and related equipment such as weight distribution systems, jacks, winches, sway controllers, cargo barriers, and other accessories. The company also sells a range of roof-racks and luggage carriers, as well as electrical systems for trailer braking and lighting. Agricultural offerings include waterproof, sealed, submersible and shock resistant lighting products. All products are marketed under a variety of recognized brand names, including Reese and Rola.

PEP claims to have about A$4.7 billion of assets under management. Its fifth fund closed in 2015 at A$2.1 billion with a view to making leveraged and management buyouts across Australasia. Earlier this year, Fund VI reached a first close of about A$2 billion for a similar mandate. Previous investment in the vehicular supply segment includes earthmoving equipment company Emeco.

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• Topics
• Australasia
• Industrials
• Consumer
• Buyouts
• Australia
• Asia
• Pacific Equity Partners
• manufacturing
• automobiles
• Agriculture