Visteon and Special Situations Venture Partners II Sign Agreement for the Sale of Certain Chassis Operations
VAN BUREN TOWNSHIP, Mich., March 29: Visteon Corporation (NYSE:VC) and Special Situations Venture Partners II L.P. (SSVP II), advised by private equity firm Orlando Management GmbH, have reached a final agreement under which SSVP II will acquire certain Visteon chassis businesses in Europe and Brazil. The final transaction has received anti-trust clearance in Germany and is expected to be completed in Europe in the second quarter of 2007 and in Brazil during the third quarter.
The agreement covers Visteon's chassis operations in Dueren and Wuelfrath, Germany, and Praszka, Poland, and certain driveline assets in Sao Paulo, Brazil. The facilities manufacture driveline and steering systems for a number of global vehicle manufacturers. Terms of the agreement were not disclosed.
"This agreement is an important part of Visteon's plan to restructure our business, improve our base operations and position the company for growth," said Don Stebbins, president and chief operating officer. "These actions demonstrate the progress Visteon is making in addressing underperforming and non-strategic facilities. When finalized, this transaction will enhance our ability to focus on growing our core product areas where we have strong market positions and enable these facilities to create value under a new ownership structure where the products have a better strategic fit."
Under the agreement, Visteon will transfer the manufacturing facilities and associated assets, including machinery, equipment, tooling, inventory as well as purchase and supply contracts and certain intellectual property rights to SSVP II. The approximately 2,400 employees currently employed in the facilities will also transfer to the new owner.
The new name of the chassis operation will be TeDrive, and it is SSVP II's intention to structure the acquired entities under the Dutch TeDrive Holding B.V. with the affiliates TeDrive Germany GmbH in Dueren, TeDrive Steering GmbH in Wuelfrath, TeDrive Poland Sp. Z.o.o. in Praszka, and TeDrive Brazil Ltda. in Arbor.
Visteon Corporation:
Visteon Corporation is a leading global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Kerpen, Germany; the company has facilities in 26 countries and employs approximately 45,000 people.
Special Situations Venture Partners II L.P and Orlando Management GmbH:
Orlando Management GmbH is a Munich, Germany based private equity firm and advises the private equity fund Special Situations Venture Partners II L.P. with total funds of EUR 255 million. The fund focuses on manufacturing, engineering and capital goods industries mainly in Germany, Switzerland and Austria.
The fund invests in medium sized companies which operate in a stable market, have a strong market position with competitive products and dedicated employees. Acquisition candidates are mainly in a financially difficult situation despite their healthy core business and competitive products.
Source: Visteon Corporation
CONTACT: Media, Jonna Christensen, +44 1268 701094, jchris18@visteon.com, Frank Schonenrock, +49 69 756199 27+, frank.schonenrock@edelman.com, Kimberley Goode, +1-734-710-5000, kgoode@visteon.com, Investor Inquiries, Derek Fiebig, +1-734-710-5800, dfiebig@visteon.com, for Visteon Corporation
Web site: http://www.visteon.com/
