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 Mergers & Acquisitions, Automotive
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

Sabic: Rapid demand growth led to Ultem shortage

December 18, 2014 12:06 pm ET

Sabic Innovative Plastics has been increasing production capacity for its Ultem polyetherimide but it still got caught short by increasing demand for ...    More

Auto supplier M-Tek relocating headquarters

December 18, 2014 3:37 pm ET

M-Tek Inc., a subsidiary of Japanese automotive supplier Kasai Kogyo Co. Ltd., will build a new North American corporate headquarters in Murfreesboro,...    More

Image

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

Image

Sweden's Indutrade buys Belgian packaging firm Verbeek

December 18, 2014 9:42 am ET

Sweden's Indutrade AB has purchased all the shares in Belgium's Verbeeck Packaging Group.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

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

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events