Target: Automotive interiors business
Sponsor: Cerberus Capital Management LP
Seller: Visteon Corp
The company did not disclose the sale price of the business, which contributed about $1 billion to the company’s 2013 sales of $7.4 billion. The business being sold makes auto components such as instrument and door panels at plants in Europe, Asia and South America, employing more than 4,000 people.
Visteon also said it had completed the sale of its 50 percent stake in Korean automotive interiors maker Duckyang Industry Co Ltd for $24.1 million and an additional $6 million in dividends.
Visteon’s climate business comprises heating, ventilation, air conditioning and powertrain cooling systems, while the electronics business includes audio and navigation systems. The businesses account for about 80 percent of Visteon’s revenue.
The deal is expected to be complete by the end of the year, the company said. Rival Johnson Controls also has put its money losing interiors business for sale.
Sagarika Jaisinghani and Mridhula Raghavan are correspondents for Reuters in Bangalore.