VAN BUREN TOWNSHIP, Mich., Jan. 31, 2013 /PRNewswire/ -- Visteon Corporation (NYSE: VC) and its longtime Korean affiliate Halla Climate Control Corp. (HCC) today announced they have completed the contribution of the majority of Visteon's automotive climate business to HCC. The transaction was divided into two phases, with the second phase on track to be completed late in the first quarter of 2013.
The total purchase price, before certain adjustments, is unchanged from the $410 million announced by the companies on Jan. 11. Based on adjustments, Visteon received cash proceeds of $295.4 million for assets contributed to HCC in the first phase, and expects to receive $111 million when certain Asia-based operations transfer in the second phase, after certain local regulatory and other processes are completed.
The companies on Jan. 11 announced an agreement to consolidate their respective climate businesses and rename the combined enterprise Halla Visteon Climate Control Corp. (HVCC), with Visteon retaining 70 percent ownership. HCC is financing the transaction through a combination of cash on hand and borrowing of approximately $295 million through new unsecured term loans in the Korean market and existing lines of credit.
"We're pleased to establish this integrated, world-class organization that is now the world's second largest global supplier of automotive climate components and systems," said Tim Leuliette, president and CEO of Visteon. "With its leading product and technology portfolio, $700 million three-year business backlog and strong balance sheet, Halla Visteon Climate Control is exceptionally well-positioned to deliver immediate value for customers and shareholders. We believe the combination of technology and financial strength that Halla Visteon represents will create opportunity for continued expansion and growth in the years ahead."Based in Korea, HVCC has a low-cost, global manufacturing footprint focused in Asia, with 32 manufacturing sites supported by five global technical centers. One of only two "full-line" climate suppliers in the industry, HVCC offers a range of climate products including compressors; heating, ventilation and air conditioning; fluid transport; powertrain cooling; and electric vehicle and hybrid battery cooling. Rothschild and Squire Sanders have been advising Visteon on the climate transaction.