Van Buren Township, Michigan -- Visteon Corp. said on 3 November that it had completed the largest phase of a deal to transfer its automotive interiors business to Dutch firm Reydel Automotive Holdings BV.
Reydel is held by New York private investment firm Cerberus Capital Management LP, former owner of Chrysler.
Under the terms of the deal, first announced May 2, Reydel assumes about $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 supplier said.
Visteon will remain in control of some real estate assets of the unit in South America and Europe, worth about $35 million.
The remaining terms or the unfinished parts of the deal were not disclosed.
The unit, which supplies automotive cockpit modules, instrument panels, door panels and floor panels, had revenue of about $1 billion in 2013. The operations include 17 plants and six engineering centers in Asia, Europe and South America.
"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," Visteon CEO Tim Leuliette said in the statement. "We have worked with Reydel Automotive to develop a detailed transition process including service agreements to ensure that interiors customers are fully supported."
by Dustin Walsh, Crain's Detroit Business
You can reach Dustin Walsh at [email protected].
