US: Visteon completes phase 1 of consolidation of climate control with Halla
Visteon Corporation and Halla Climate Control Corp. (HCC) have announced they have completed the transfer of the majority of Visteon's automotive climate business to HCC.
The transaction was divided into two phases, with the second phase on track to be completed late in the first quarter of 2013.
The total purchase price, before certain adjustments, is unchanged from the US$410m announced by the companies on January 11. Based on adjustments, Visteon received cash proceeds of US$295.4m for assets contributed to HCC in the first phase, and expects to receive US$111m when certain Asia-based operations transfer in the second phase, after local regulatory and other processes are completed.
Earlier this month the companies announced an agreement to consolidate their respective climate businesses and rename the combined enterprise Halla Visteon Climate Control Corp. (HVCC), with Visteon retaining 70 percent ownership. HCC is financing the transaction through a combination of cash on hand and borrowing of approximately US$295m through new unsecured term loans in the Korean market and existing lines of credit.
"We're pleased to establish this integrated, world-class organization that is now the world's second largest global supplier of automotive climate components and systems," said Tim Leuliette, president and CEO of Visteon. "With its leading product and technology portfolio, US$700 million three-year business backlog and strong balance sheet, Halla Visteon Climate Control is exceptionally well-positioned to deliver immediate value for customers and shareholders.We believe the combination of technology and financial strength that Halla Visteon represents will create opportunity for continued expansion and growth in the years ahead."
Based in Korea, HVCC has a low-cost, global manufacturing footprint focused in Asia, with 32 manufacturing sites supported by five global technical centers. One of only two "full-line" climate suppliers in the industry, HVCC offers a range of climate products including compressors; heating, ventilation and air conditioning; fluid transport; powertrain cooling; and electric vehicle and hybrid battery cooling.
Rothschild and Squire Sanders have been advising Visteon on the climate transaction.
Quarterly/fiscal full year results continued to roll in this week with a healthy uptick at Suzuki in 2012/3, the latest Japanese automaker to finally shrug off the combined effects of the double whamm...
This QUBE report from just-auto provides a comprehensive overview of the global cockpits and instrumentation sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use t...
This QUBE report from just-auto provides a comprehensive overview of the global light vehicle HVAC sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use this report...
This QUBE report from just-auto provides a comprehensive overview of the global light vehicle engine cooling sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use t...
US Original Equipment Suppliers Association (OESA) says it has appointed Julie Fream as its new president and CEO with effect from 1 October this year, at which time she will also join the board of di...
TechNavio's analysts forecast the Global Automotive Cockpit Electronics market to grow at a CAGR of 11.65 percent over the period 2012-2016. One of the key factors contributing to this market growth i...
Johnson Controls (JCI) is approaching private equity firms as it looks to sell its automotive electronics unit estimated to be worth about US$1bn....
- What now for docked Hoegh Osaka cargo?
- THE WEEK THAT WAS: New Hondas and the ship's up
- RESEARCH ANALYSIS: Review of instrumentation
- VEHICLE ANALYSIS: Porsche Cayenne S E-Hybrid
- ASEAN vehicle market down almost 10% in 2014
- JLR recreates 1948 line for Defender plant tour
- Most cars unscathed by Osaka drama: ship owner
- Ford 2014 operating profit plunges $2.3bn
- GENEVA DEBUTS: Opel Corsa OPC & VW Golf GTD estate
- "Bumps and dents" for some driveable Hoegh cars