Horizon Global 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.

Horizon Global intends to fund the acquisition, comprised of approximately €89 million ($100.4 million) cash and assumed net debt of €42 million ($47 million), which will be refinanced, through an expansion of its existing term loan.

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

Westfalia is the inventor of the European ball towbar and has been manufacturing and marketing branded towing products since 1932. Rheda-Wiedenbrück, Germany-based Westfalia holds approximately 100 towbar patents and more than 30 transport system patents, operating facilities in 11 countries.

Troy, MI-based Horizon Global is a manufacturer of branded towing and trailering equipment.

“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 CEO 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.”