Visteon Announces Definitive Agreement to Consolidate Worldwide
Climate Operations Under 70 Percent-Owned Affiliate Halla Climate
Control
VAN BUREN TOWNSHIP, Mich.,
Jan. 11, 2013 /PRNewswire/
-- Visteon Corporation (NYSE: VC) and its longtime Korean
affiliate Halla Climate Control Corp. (HCC) today announced they
have signed a definitive agreement to contribute most of Visteon's
automotive climate business to HCC for a purchase price of
$410 million in cash (KRW 436 billion), subject to certain adjustments.
The transaction, first outlined in September
2012, is subject to regulatory reviews and other conditions,
and is expected to be completed in the first quarter of 2013. HCC
is expected to finance the transaction through a combination of
cash on hand and moderate borrowing.
(Logo: http://photos.prnewswire.com/prnh/20001201/DEF008LOGO
)
Visteon owns 70 percent of Korean-based HCC and will have the
same ownership level in the combined business. The company, to be
renamed Halla Visteon Climate Control Corp., will be the world's
second largest global supplier of automotive climate components and
systems. The combined business will have facilities in 17
countries, including 32 manufacturing plants, five global technical
centers and seven regional customer centers. The transaction will
include Visteon's equity interest in climate joint ventures in
China, India and Japan.
"This agreement demonstrates our commitment to provide the best
climate technological solutions to automakers globally and to
further capitalize on our successful relationship with Halla, which
has seen revenues quadruple over the past 20 years – including the
last 13 under majority Visteon ownership," said Tim Leuliette, Visteon president and CEO. "The
combined business will have a strong balance sheet, an
above-industry average growth profile, and a manufacturing and
engineering footprint considered the lowest cost among climate
suppliers. The consolidated Halla Visteon Climate Control will be
exceptionally well-positioned to deliver value for customers and
shareholders."
Visteon's climate business had revenues of more than
$4 billion in 2011. The operations
that Visteon will consolidate into Halla span 12 countries across
Europe, North America and Asia and encompass more than 5,000
manufacturing, engineering and administrative employees.
Core products of Halla Visteon Climate Control will include
heating, ventilation and air conditioning (HVAC) components;
compressors; fluid transport and powertrain cooling products. Its
innovative climate capabilities will include heat pump systems and
battery thermal management for electric and hybrid vehicles.
Throughout its majority ownership, Visteon has supported HCC's
approximately $1 billion investment
to become a more competitive supplier globally, building on HCC's
strong reputation in Korea.
Rothschild and Squire Sanders are advising Visteon on the
climate transaction.
About Visteon
Visteon is a leading global automotive
supplier delivering value for vehicle manufacturers and
shareholders through a family of businesses including:
- Halla Visteon Climate Control, majority-owned by Visteon and
the world's second largest global supplier of automotive climate
components and systems (consolidation to be completed in first
quarter 2013).
- Visteon Electronics, a leading supplier of audio/infotainment,
driver information, center stack electronics and feature control
modules
- Visteon Interiors, a global provider of vehicle cockpit
modules, instrument panels, consoles and door trim modules.
- Yanfeng Visteon Automotive Trim Systems Co., Ltd., a successful
China-based partnership between
Visteon and Shanghai Automotive Industry Corporation's automotive
components group, Huayu Automotive Systems.
Through this family of enterprises, Visteon designs, engineers
and manufactures innovative components and systems for virtually
every vehicle manufacturer worldwide, and these businesses
generated more than $12 billion in
sales in 2011, including unconsolidated operations. With corporate
offices in Van Buren Township,
Mich. (U.S.); Shanghai,
China; and Chelmsford, UK;
Visteon has facilities in 28 countries and employs through its
various businesses, including unconsolidated operations,
approximately 55,000 people. Learn more at www.visteon.com.
SOURCE Visteon Corporation