Varroc Group to buy automotive lighting unit of Visteon for Rs457.7 crore
12 Mar 2012
Indian auto component maker Varroc Group today said it had struck a deal to buy the automotive lighting division of US auto parts supplier Visteon Corp for $92 million (Rs457.7 crore) in cash.
The acquisition comes less than two months after the Aurangabad-based auto component maker acquired an 80-per cent stake in Europe's largest two-wheeler headlights and tail lights maker TriOM SPA, for an undisclosed sum. (See: Varroc Group acquires majority stake in Italy's TriOM SPA)
Visteon, based in Van Buren Township, Michigan and one of the world's largest suppliers of automotive parts, said that the sale would allow it to focus on making climate-control and electronics products for vehicle manufacturers and on its joint ventures.
The business being acquired by Varroc 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.
Visteon's automotive lighting division has operations in Europe, North America and Asia and had 2011 revenue of $531 million (Rs2,636 crore).
Visteon would transfer its automotive lighting division operations to Varroc, which would include manufacturing and engineering facilities in Novy Jicin and Rychvald in the Czech Republic, Monterrey in Mexico and Pune in India.
