Visteon to sell most of its auto interiors business to Cerberus
(Reuters) - Auto parts maker Visteon Corp (VC.N) said it would sell most of its automotive interiors business to private equity firm Cerberus Capital Management LP CBC.UL as it focuses on its fast-growing climate control and electronics operations.
The company did not disclose the sale price of the business, which contributed about $1 billion to the company's 2013 sales of $7.4 billion.
The business being sold makes auto components such as instrument and door panels at plants in Europe, Asia and South America, employing more than 4,000 people.
Visteon also said on Friday it had completed the sale of its 50 percent stake in Korean automotive interiors maker Duckyang Industry Co Ltd (024900.KS) for $24.1 million and an additional $6 million in dividends.
Visteon's climate business comprises heating, ventilation, air conditioning and powertrain cooling systems, while the electronics business includes audio and navigation systems. The businesses account for about 80 percent of Visteon's revenue.
The deal is expected to be complete by the end of the year, the company said.
Rival Johnson Controls (JCI.N) has also put its money losing interiors business for sale.
Visteon shares closed at $87.45 on the New York Stock Exchange on Thursday.
(Reporting by Sagarika Jaisinghani and Mridhula Raghavan in Bangalore; Editing by Saumyadeb Chakrabarty)