Visteon to Sell Automotive Lighting Business to India's Varroc Group

Visteon Corporation today announced that it has agreed to sell its automotive lighting business to India-based Varroc Group, a global provider of automotive parts, for $92 million in cash. The transaction, which is subject to regulatory reviews and other conditions, is expected to be completed in the third quarter of 2012. The business to be sold encompasses a wide range of exterior lighting products supplied to global vehicle manufacturers, including front and rear lighting systems, auxiliary lamps and key subcomponents such as projectors and electronic modules. With 2011 revenue of $531 million, the business to be sold has operations in Europe, North America and Asia.

Visteon operations that would transfer to Varroc include manufacturing and engineering facilities in Nový Jičín and Rychvald, Czech Republic; Monterrey, Mexico; and Pune, India. The companies intend for the sale to include Visteon’s equity interest in a China-based lighting joint venture, Visteon TYC Corporation. Certain other lighting employees and assets would transfer as well. In total, about 4,200 manufacturing, engineering and administrative employees are part of the lighting business that is involved in the transaction.