By: Michael Lauzon
March 20, 2014
As part of its strategy to exit automotive interiors, Visteon Corp. plans to sell its 50 percent stake in its Duckyang Industry Co. Ltd. joint venture in South Korea.
Visteon announced March 19 that it has reached a sales agreement with proposed purchasers comprising certain management shareholders of Duckyang and associated parties. The sale price is $24.1 million and Visteon expects to finalize the deal in April after closing conditions are met. Visteon, based in the Detroit suburb of Van Buren Township Mich., said it should also receive about $5.9 million in dividends.
Duckyang of Ulsan, South Korea, develops and produces original equipment interior components for vehicles.
“We are working toward the interiors divestiture as part of our commitment to deliver customer and shareholder value by focusing on our core growth climate and electronics businesses,” explained Visteon President and CEO Tim Leuliette in a news release.
Early this year Visteon boosted its business in vehicle electronics by purchasing Johnson Control Inc.’s electronics unit for $265 million. The unit makes instrument clusters, infotainment displays and body electronics. Visteon estimates the deal should take its annual sales in electronics to $3 billion. Last year, Visteon’s total sales reached $7.4 billion.