Visteon says it has agreed to divest the majority of its global automotive interiors business to an affiliate of Cerberus Capital Management, subject to regulatory reviews.
The supplier added it has also completed a previously announced agreement to sell its 50% ownership stake in Korean automotive interiors joint venture, Duckyang Industry Co, as part of the divestiture of its interiors business.
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On 19 March, Visteon said it would sell its stake in the joint venture to certain management shareholders of Duckyang and associated parties, for the equivalent of around US$24.1m, plus around US$6m in dividends.
The operations to be sold to the Cerberus affiliate had revenues of around US$1bn in 2013 and produce a range of automotive interior products supplied to global vehicle manufacturers, including cockpit modules, instrument panels, door panels and floor consoles.
These operations include 15 manufacturing plants, five just-in-time assembly plants and six engineering centres in Europe, Asia and South America.
As part of this omnibus transaction, the Cerberus affiliate made an irrevocable offer to purchase the interiors business in France and Visteon France will now begin consultation with employee representatives.
In total, more than 4,000 manufacturing, engineering and administrative employees are part of the business involved in the transaction.
“The transaction supports our previously announced intention to divest our interiors business and focus on our core thermal management and cockpit electronic eco-systems businesses, which enjoy market-leading positions in segments that are growing faster than the industry overall,” said Visteon president and CEO, Timothy Leuliette.
“We are pleased to be selling this interiors business to a well-capitalised, operationally-focused investment firm with a track record for long-term value creation, where we think it will be an excellent fit.”
