Van Buren Township-based Visteon Corp. announced today it will sell its stake in Halla Visteon Climate Control Corp. for approximately $3.6 billion.
“We feel this is an opportune time to create additional value for shareholders by selling our ownership interest in HVCC and concentrating on our cockpit electronics and connected car portfolio, which is well-positioned to capitalize on the emerging era of the connected vehicle,” says Timothy D. Leuliette, president and CEO of Visteon, which reported sales of $7.4 billion in 2013.
The buyers — an affiliate of South Korea-based private equity company Hahn and Co. and Hankook Tire Co., also based in South Korea — are expected to acquire Visteon’s 70-percent ownership interest in the company in the first half of 2015.
“HVCC is Korea’s largest and the world’s second largest provider of thermal management solutions and will be an excellent fit within our existing portfolio and strategy,” says Scott Hahn, CEO of Hahn and Co. “Customers of HVCC will continue to benefit from its globally renowned technology solutions, highly respected management team, strong balance sheet, dedication to innovation, and expanding global market presence.”
The transaction is subject to regulatory reviews, shareholder approval, and other conditions. Visteon officials will provide greater details on the transaction, including the future business structure that will support continued expansion of the electronics and connected car business during the Deutsche Bank 2015 Global Auto Industry Conference, to be held Jan. 13 in Detroit.
IN OTHER VISTEON NEWS, the global automotive supplier will present an expanded portfolio of Cloud-based products and services at the 2015 International CES, to be held Jan. 6-9 in Las Vegas.