Horizon Global Corp. and H2 Equity Partners have mutually agreed to terminate the Brink Group acquisition agreement, effective June 14.
As part of the termination agreement, Horizon Global agreed to pay a break fee to the Brink Group in the amount of €4.75 million.
The acquisition will be withdrawn from regulatory review in Germany and the U.K.
“Both Horizon Global and the Brink Group are two strong organizations that are leaders in the towing and trailering industry in Europe,” said Carl Bizon, Horizon Global Interim president and CEO. “While the decision to acquire Brink was based on a compelling opportunity for our company, ultimately, we have mutually agreed that our best path forward is to remain independent. We have nothing but respect for the Brink Group team and H2 Partners as part of this process. In the near and medium term, my focus, and that of the entire Horizon Global team, is centered on evolving business conditions and executing the company’s Action Plan, which we believe will improve performance in our existing Horizon Americas and Europe-Africa operations.”
The company will host a conference call at 8:30 a.m. ET on Wednesday, June 20, to discuss the termination of the Brink Group acquisition agreement and update investors on current business conditions and outlook for its global operations.
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.
Investor group Marcato Capital Management, which owns a stake in Horizon, had advocated for the company to stop acquisitions until its operating margins are at 10 percent. It specifically had recommended the acquisition of Brink Group be terminated in February.