Visteon says it has completed the first and largest phase of the sale of its remaining automotive interiors business to Reydel Automotive Holdings, an affiliate of Cerberus Capital Management.
Earlier this May, Visteon unveiled an agreement to divest the majority of its interiors business to Reydel Automotive, with Visteon focussing on its core automotive cockpit electronics and thermal energy management businesses.
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The initial transaction which was completed 1 November, is the largest in a series of transaction closings with Reydel Automotive, which 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 around US$1bn in 2013.
They include 17 manufacturing facilities, six just-in-time assembly plants and eight engineering centres in Europe, Asia and South America.
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By GlobalDataCertain 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-capitalised, operationally-focused investment firm where it should be an outstanding fit with growth potential,” said Visteon president and CEO, Timothy Leuliette.
“We have worked with Reydel Automotive to develop a detailed transition process including service agreements to ensure interiors customers are fully supported.”
