Cooper-Standard to sell thermal and emissions business to Visteon unit for $46 million
Cooper-Standard Automotive Inc. has agreed to sell its thermal and emissions product line to Visteon Corp. unit Halla Visteon Climate Control Corp. in a transaction valued at $46 million.
The line includes exhaust gas recirculation modules, electronic coolant pumps and valves and electronic throttle bodies. Under the agreement, Halla Visteon Climate Control plans to move production to its factories; physical assets from Cooper-Standard operations in North America, Germany, France and the Czech Republic are to transfer to Halla Visteon Climate Control; and the companies plan to transfer some engineering resources in North America and Germany from Cooper-Standard to Halla Visteon Climate Control.
The companies announced the deal earlier today.
Halla Visteon Climate Control operates 35 plants in North and South America, Europe and Asia.
The deal is expected to close in the third quarter and is subject to adjustments and regulatory approvals.
Cooper-Standard said the sale enables it to develop product lines in which it can gain the most competitive advantage.
“A strategic decision was made to divest our thermal and emissions product line and allow the company to focus resources on our four core product groups: sealing and trim, fuel and brake delivery, fluid transfer and anti-vibration systems,” Cooper-Standard CEO Jeffrey Edwards said in a statement.
Halla Visteon Climate Control customers include the Detroit 3, Tesla Motors, Honda Motor Co., Nissan Motor Corp., Volvo Car Corp., Volkswagen AG, BMW Group and Mercedes-Benz.
“This acquisition builds on HVCC’s thermal energy management offering, and enhances the company’s competitive position as a system and module supplier through solutions that deliver value to customers, investors and employees,” HVCC CEO YH Park said.
Cooper-Standard, of suburban Detroit, ranks No. 67 on the Automotive News list of the top 100 global suppliers, with estimated worldwide parts sales to automakers of $3.09 billion during the 2013 fiscal year. Visteon, also of suburban Detroit, ranks No. 31 on the list, with worldwide parts sales to automakers of $7.44 billion in 2013.