Visteon Corp. has inked a deal to divest its global automotive interiors operations to an affiliate of Cerberus Capital Management LP. Under the terms of the agreement, Cerberus assumes around $20 million in pension liabilities of the unit while Visteon will make a $95-million investment into the business under Cerberus.
Visteon will also provide $90 million in revolving credit to bridge the agreement that will be repaid by Cerberus. Visteon, however, will still take control of certain real estate assets of the business unit -- worth $35 million -- in South America and Europe.
Visteon’s global automotive interiors unit supplies automotive cockpit modules, instrument panels, door panels and floor panels from 15 sites and six engineering centers in Asia, Europe and South America.
In the fourth quarter of 2013, Visteon posted $317 million in interiors revenue, representing a $19-million decline from the same period in 2012.
Visteon attributed $12 million of the drop to lower production volumes in Europe, where it is heavily focused. The unit posted $1.26 billion in 2013 in revenues in 2013, down from $1.39 billion in 2012.
Visteon chief executive Timothy Leuliette said in a statement that the deal supports the company’s intention to divest its interiors business and concentrate on core thermal management and cockpit electronic ecosystems operations.
Visteon has also completed an agreement to sell its 50-percent stake in joint venture Duckyang Industry Co. Ltd. to Duckyang stakeholders for $24.1 million and around $6 million in dividends.