Visteon To Sell Stake In Halla Visteon Climate Control

VAN BUREN TWP. — Visteon Corp. (NYSE: VC) will sell its 70 percent ownership stake in Halla Visteon Climate Control Corp. to an affiliate of the South Korean private equity firm Hahn & Co. and South Korea-based Hankook Tire Co. Ltd. for about $3.6 billion.

The companies said the deal values HVCC at 10.1 times earnings before interest, taxes, depreciation and amortization, a measure usually known as cash flow.

Visteon left bankruptcy in 2010 and sold its climate business to Halla Climate Control in 2013, retaining a stake.

Today’s Visteon is concentrated mostly in connected car and in-vehicle technologies. Visteon management said it planned to provide greater details on the transaction Jan. 13 at the Deutsche Bank 2015 Global Auto Industry Conference in Detroit — including the resultant business structure that will support continued expansion of the electronics and connected car business.

The transaction, which is subject to regulatory reviews, shareholder approval and other conditions, is expected to be completed in the first half of 2015.

HVCC is a full-line supplier of automotive thermal management. Products include heating ventilation and air conditioning; compressors; powertrain cooling; fluid transport; and electric, hybrid and fuel cell vehicle thermal systems. HVCC has 36 manufacturing sites and four global technical centers in 19 countries, and employs nearly 15,500 people. It is traded on the Korea Stock Exchange.

More at www.visteon.com.

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