Acquired by Indian car parts supplier Varroc Group.
March 13, 2012
by The Canadian Press
VAN BUREN TOWNSHIP, Mich.: 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 will allow it to concentrate on making climate-control and electronics products for vehicle manufacturers and on its joint ventures.
Viseton’s lighting business reported $531 million in revenue last year and employs about 4,200 workers. That is about 16 per cent of Visteon’s current work force of about 26,000 employees.
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.
Meanwhile, the company’s Canadian operation in Belleville, Ont., with 400 employees, is part of the climate division it plans to focus on and will remain open.
Visteon, which is based in Van Buren Township, Mich., expects to complete the deal in the third quarter.