Cerberus to Acquire Visteon's Automotive Interiors Biz
May 05, 2014
Cerberus Capital Management has agreed to acquire the global automotive interiors business of Visteon (NYSE: VC). The automotive operations, which include 15 manufacturing plants, five assembly plants and six engineering centers, had revenues of around $1 billion in 2013; they produce a range of automotive interior products for vehicle makers, including cockpit modules, instrument panels, door panels and floor consoles. Under the agreement's terms, Visteon will divest the operations for nominal consideration, contributing up to $95 million to the business. Cerberus will assume approximately $20 million of pension and other liabilities of the business. Furthermore, Visteon has agreed to provide a seller-backed revolver to bridge any shortfall of a targeted $90 million of external credit facilities.