Visteon Corporation on Monday (12 March) said it would sell its automotive lighting business to India’s Varroc Group, a global automotive parts supplier, for US$92m in cash.
The transaction, subject to regulatory reviews and other conditions, is expected to be completed in the third quarter.
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The business sold supplies exterior lighting products to global vehicle manufacturers, including front and rear lighting systems, auxiliary lamps and key subcomponents such as projectors and electronic modules. It had 2011 revenue of $531m and operations in Europe, North America and Asia.
“This transaction allows Visteon to focus on our core climate and electronics businesses and our joint venture relationships, which are positioned for profitable growth and market leadership,” said chairman, CEO and president Donald Stebbins “We are pleased to be selling our lighting business, with its many competitive strengths, to a successful and growing company with 26 manufacturing plants and three engineering centres, where we think it will be an excellent strategic fit.
Visteon operations that would transfer to Varroc include manufacturing and engineering facilities in Novy Jicin and Rychvald, Czech Republic; Monterrey, Mexico; and Pune, India. The companies intend the sale to include Visteon’s equity interest in a China-based lighting joint venture, Visteon TYC Corporation. Some lighting employees and assets would transfer as well. In total, about 4,200 manufacturing, engineering and administrative employees are part of the lighting business that is involved in the transaction.
