Attached files
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| 8-K - 8-K 1.01 7.01 BRINK - Horizon Global Corp | hzn8-kreportbrink.htm |
1 DRIVEN TO DELIVER Q1 2016 Earnings NYSE: HZN
Horizon Global to Acquire
Brink Group
December 14, 2017
2 DRIVEN TO DELIVER Q3 2017 Earnings NYSE: HZN
SAFE HARBOR STATEMENT
FORWARD-LOOKING STATEMENTS
This presentation contains "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; the spin-off from TriMas Corporation; our ability to
successfully complete the acquisition of the Brink Group, including the possibility that the closing conditions to the contemplated acquisition may
not be satisfied or waived; delay in closing the proposed acquisition of the Brink Group; risks inherent in the achievement of cost synergies and
the timing thereof in connection with the Brink Group acquisition, including whether the acquisition will be accretive; the Company's ability to
promptly and effectively integrate the Brink Group; the performance and costs of integration of the Brink Group; the timing and amount of
repurchases of the Company‟s common stock, if any; 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.
3 DRIVEN TO DELIVER Q3 2017 Earnings NYSE: HZN
Our global business is focused on top-quality towing and trailering
products for recreational and commercial use and is split between
these applications:
WORK
Agricultural, automotive, construction, fleet, industrial marine, military,
mining, and municipalities
PLAY
Power sports, equestrian, recreational vehicle, specialty automotive, and
truck accessory
OUR VISION: EMPOWERING PEOPLE TO
LIVE, WORK AND PLAY
4 DRIVEN TO DELIVER Q3 2017 Earnings NYSE: HZN
A COMPELLING COMBINATION
REINFORCES
Horizon‟s position as a global leader in products that
empower people to work, live and play.
POSITIONS
Horizon to better serve the needs of core customers in
all channels – OEM, OES, aftermarket and retail/e-
commerce.
ENHANCES
Horizon‟s product portfolio, state-of-the-art
manufacturing and e-commerce strategies.
ADVANCES
Horizon‟s progress towards achieving its strategic
goals, including revenue and margin targets.
5 DRIVEN TO DELIVER Q3 2017 Earnings NYSE: HZN
€169 million
TRANSACTION OVERVIEW
PRICE
FINANCING
TIMING
PROFITABILITY
MULTIPLE
Mid 9x adjusted EBITDA
(IFRS/U.S. GAAP differences considered)
New long-term debt and cash on hand
(extends achievement of <2x leverage to 2020)
Accretive to operating margin in first full year
(full run-rate synergies €10 – €12 million - 2020)
Close expected by the end of Q2 2018,
subject to customary closing conditions,
including receipt of regulatory approvals
6 DRIVEN TO DELIVER Q3 2017 Earnings NYSE: HZN
BRINK GROUP OVERVIEW
Founded in 1903, Brink provides innovative, safe and
easy-to-use towing solutions to its customers
Employs a team of approximately 700 people, with a
strong management team
With approximately $150M in annual revenue, serves
the auto OEM, OES and aftermarket channels
Based in the Netherlands, operating 9 facilities in 8
countries producing nearly one million towbars
Brings advanced product and manufacturing
technology
Strong position with global customers in the OES
channel
7 DRIVEN TO DELIVER Q3 2017 Earnings NYSE: HZN
BRINK GROUP PRODUCT PROFILE
KEY PRODUCTS
Vehicle towing
Sensory wiring
Bike rack harnesses
Roof top cargo and
storage
Compatible brake
sensors
ADVANTAGES
Hidden „sleek” design
offering the “perfect fit”
European tow designs
Customer safety
Easily programmed wire kits
Compatibility with multiple
vehicle models in Europe
and U.S.
8 DRIVEN TO DELIVER Q3 2017 Earnings NYSE: HZN
Other
Aftermarket
OEM
Retail/
E-commerce
Other
OES
COMBINED REVENUE MIX
Aftermarket
OEM
Retail/
E-commerce
Other
OES
Other
EUROPE-
AFRICA
HORIZON
GLOBAL
BEFORE AFTER
As reported in third quarter 2017
As reported in third quarter 2017
Aftermarket
Retail/E-C
OEM
OES
Aftermarket
Retail/E-C OEM
OES
NOVEMBER 2017
OEM
After
Market
Retail/
e-commerce
OES
LEADING CUSTOMERS ACROSS ALL
CHANNELS
10 DRIVEN TO DELIVER Q3 2017 Earnings NYSE: HZN
▪ Multiple project work streams
identified to deliver synergies
▪ Synergy work streams will
fold into Horizon Global‟s
ongoing European integration
▪ Three-year synergy plan
expected to deliver €10M –
€12M in annual savings
Facility
Consolidation
Sourcing &
Supply Chain
Warehouse
& Logistics
Organization
SYNERGY OPPORTUNITIES
Commercial
ADVANCES HORIZON GLOBAL’S
STRATEGIC GOALS
EXPANDS OPPORTUNITY FOR VALUE CREATION
STRATEGIC
GOALS
‹#› DRIVENTO DELIVER Q1 2016Earnings NYSE: HZN
Q&A