Visteon Corp. wants to divest two of its four units to pare low-margin revenue and to concentrate on faster-growing operations in Asia, according to sources. Last October, the U.S. automotive supplier exited a bankruptcy that lasted 16 months. Visteon hopes that other suppliers will be interested in its lighting and interiors units. Last year, these divisions generated about $2.7 billion in revenue and could amount to as much as $450 million when combined.
A source said that Rothschild is representing Visteon in these two plans. On Oct. 17, Visteon said that Goldman Sachs Group Inc. has been hired to do a broader strategic review.
Two sources said that independent board members like Harry Wilson and Tim Leuliette urged Stebbins to interview banks like Goldman, JPMorgan Chase & Co. and Citigroup Inc. to aid in streamlining a company with most of its value in joint ventures or stakes in overseas businesses.
Visteon is a former unit of Ford Motor Co. But then, Don Luciani, a managing partner at Amherst Partners LLC, said that capital is “still relatively scarce." He said that there has been “less patience” for investing in marginally performing business units. Most cases lead to selling, which means that capital companies could reinvest in higher growth, have better return businesses and won’t have to invest in the business. [source: Autonews]