VAN BUREN TOWNSHIP, MICH. (March 12, 12:15 p.m. ET) — Visteon Corp. today announced plans to sell its automotive lighting business, which has operations in Europe, North America and Asia, to India's Varroc Group for $92 million in cash.
Donald Stebbins, Visteon chairman, CEO and president, said the company is selling the business to focus on its core climate and electronics businesses.
Visteon operations that will transfer to Aurangabad, India-based Varroc include plants in Novy Jicin and Rychvald, Czech Republic; Monterrey, Mexico; and Pune, India.
The companies also plan to include Visteon's equity interest in a China-based lighting joint venture, Visteon TYC Corp., in the deal.
The business sells exterior lighting products, including front and rear lighting systems and auxiliary lamps. It has annual sales of $531 million and employs 4,200.
The deal is scheduled to be completed in the third quarter of 2012.
Varroc has 5,000 employees at 20 manufacturing plants in India, five in Europe and one in Southeast Asia.
Van Buren Township-based Visteon has been selling other non-core operations, including its global automotive interiors business.
The buyer of that business also is based outside the United States: China's Yanfeng Visteon Automotive Trim Systems Co. Ltd.
Yanfeng Visteon is wholly owned by Huayu Automotive Systems, which is the parts arm of automaker Shanghai Automotive Industry Corp.