Horizon Global Corp. has agreed to sell its Asia-Pacific business segment to Pacific Equity Partners for $230 million in cash, subject to customary closing adjustments. The company intends to use the proceeds from the sale to significantly reduce its debt and bolster its liquidity, allowing for additional financial flexibility.

Upon completion of the sale and subsequent retirement of debt, Horizon Global intends to pursue a full or partial refinancing of its remaining secured debt. If successful, it is expected that this refinancing would close in the fourth quarter of 2019.

“We are pleased with the outcome of the sale process,” said Horizon Global President and CEO Carl Bizon in a statement. “While the proceeds from this sale will allow us to satisfy the $100 million prepayment obligation under our first lien term loan, we expect to make additional debt repayments substantially in excess of this amount. This transaction also simplifies our operating structure, allowing us to deepen our focus on our remaining operating segments, which we believe can be restored to historical profitability levels.

Pacific Equity Partners Managing Director Andrew Charlier added: “[The Asia-Pacific business segment] is led by an outstanding management team and has a track record of developing innovative products and solutions for its customers. 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.”

The transaction is subject to the satisfaction of customary closing conditions and is expected to close before the end of the third quarter of 2019.

Jefferies LLC is serving as financial adviser to Horizon Global in the transaction.

Horizon Global is a 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, Australia and Europe. Pacific Equity Partners is a leading Australian private equity firm with over $4.5 billion in funds currently under management.