Visteon strikes deal to shed the last of its auto interiors business

Dustin Walsh
CRAIN'S DETROIT BUSINESS

Published: May 2, 2014 10:11 am ET
Updated: May 2, 2014 11:51 am ET

Related to this story

Topics Automotive, Mergers & Acquisitions
Companies & Associations Visteon Corp.

Visteon Corp. said it signed an agreement to sell its global automotive interiors business to an affiliate of private investment firm Cerberus Capital Management LP.

Under the terms of the deal, Cerberus assumes the approximately $20 million in pension liabilities of the business unit, and Visteon will invest $95 million into the business under Cerberus. Visteon has also agreed to provide $90 million in revolving credit to bridge the deal, which will be paid back by Cerberus, the Van Buren Township supplier said in a news release.

Visteon will remain in control of certain real estate assets of the unit in South America and Europe, worth about $35 million, it said.

The unit, which supplies automotive cockpit modules, instrument panels, door panels and floor panels, had revenues of approximately $1 billion in 2013. The operations include 15 plants and six engineering centers in Asia, Europe and South America.  

“The transaction supports our previously announced intention to divest our interiors business and focus on our core thermal management and cockpit electronic ecosystems businesses, which enjoy market-leading positions in segments that are growing faster than the industry overall,” Timothy Leuliette, Visteon president and CEO, said in a statement. “We are pleased to be selling this interiors business to a well-capitalized, operationally focused investment firm with a track record for long-term value creation, where we think it will be an excellent fit.” 

Visteon also announced it completed its previously announced deal to sell its 50 percent stake in joint venture Duckyang Industry Co. Ltd. to Duckyang shareholders for $24.1 million, plus roughly $6 million in dividends. ​That JV operated interiors plants in South Korea.

The company has been selling off its interiors operations for more than a year, focusing instead on electronics and heating and air conditioning systems.


Comments

Visteon strikes deal to shed the last of its auto interiors business

Dustin Walsh
CRAIN'S DETROIT BUSINESS

Published: May 2, 2014 10:11 am ET
Updated: May 2, 2014 11:51 am ET

Post Your Comments


Back to story


More stories

Image

German auto supplier Benecke-Kaliko to build second plant in China

October 1, 2014 10:24 am ET

German auto supplier Benecke-Kaliko AG is set to build its second Chinese facility, in Changzhou, to produce surface materials for automotive...    More

Image

RJG buys UK training group G&A

September 30, 2014 11:10 am ET

G&A Moulding Technology Ltd., a United Kingdom-based training and consultancy group, has been bought by RJG Inc., the U.S.-based training business.    More

Image

Ohio molder Denbro Plastics moves to new location

September 29, 2014 6:17 pm ET

Logo products injection molder Denbro Plastics Co. has moved to another plant within Toledo, Ohio, to streamline production and improve efficiency.    More

Image

Japan's parts makers face challenges as carmakers expand supply base

September 29, 2014 11:01 am ET

For all their size and success, Japanese auto suppliers that rocketed to global dominance on the coattails of their No. 1 customer, Toyota Motor Corp....    More

Image

Clariant extends reach into Asia with acquisition

September 29, 2014 9:54 am ET

Clariant International Ltd. is buying VitaPac (HK) Industrial Ltd., a Hong Kong-based company which produces desiccant packets for the healthcare pack...    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events