Visteon Sells Automotive Lighting Unit For $92M
VAN BUREN TOWNSHIP, Mich. (AP) — Auto parts maker Visteon Corp. is selling its automotive lighting business to Indian automotive parts supplier Varroc Group for $92 million.
Visteon said the sale announced Monday will allow it to concentrate on making climate-control and electronics products for vehicle manufacturers and on its joint ventures.
The business being sold accounted for $531 million in revenue last year and employs about 4,200 workers. That is about 16 percent of Visteon's current work force of about 26,000 employees. Visteon had $8.05 billion in total revenue in 2011.
The operations being sold make front and rear lighting systems, auxiliary lamps and subcomponents such as projectors and electronic modules. The business has operations in Europe, North America and Asia.
The agreement is also expected to include Visteon's equity stake in Visteon TYC Corp., a China-based lighting joint venture.
Plants involved in the sale include those in Novy Jicin and Rychvald, Czech Republic; Monterrey, Mexico and Pune, India.
Visteon, which is based in Van Buren Township, Mich., expects to complete the deal in the third quarter.
Visteon was spun off from Ford Motor Co. in 2000. It filed for bankruptcy protection in 2009 and emerged in 2010 after shedding billions in debt and pension costs.
Its shares rose 59 cents, or 1.1 percent, to $53.70 in morning trading. They have recovered from a 52-week low of $38.32 in early October. They traded as high as $71 in mid-May.