Visteon Corporation has completed the first and largest phase of the sale of its remaining automotive interiors business to Reydel Automotive Holdings B.V., an affiliate of Cerberus Capital Management, L.P.
Visteon on May 2 announced an agreement to divest the majority of its interiors business to Reydel Automotive, supporting Visteon’s focus on its core automotive cockpit electronics and thermal energy management businesses. The initial transaction that was completed Nov. 1 is the largest in a series of transaction closings with Reydel Automotive that are expected to continue through the end of the first quarter of 2015, with timing dependent on local government approvals. Terms of the sale are consistent with those announced by Visteon in May.
The operations being sold supply global vehicle manufacturers with products including cockpit modules, instrument panels, door panels, floor consoles and custom products, and in the aggregate had revenues of approximately $1 billion in 2013. They encompass 17 manufacturing facilities, six just-in-time assembly plants and eight engineering centers in Europe, Asia and South America. Certain other interiors employees and assets are also transferring. In total, about 5,000 manufacturing, engineering and administrative employees are part of the interiors business involved in the transaction.
“We are pleased to have substantially completed the sale of the majority of our interiors business to a well-capitalized, operationally focused investment firm where it should be an outstanding fit with growth potential,” said Visteon President and CEO Timothy D. Leuliette. “We have worked with Reydel Automotive to develop a detailed transition process including service agreements to ensure that interiors customers are fully supported.”
