Varroc Group concludes acquisition of Visteon TYC Corp in China

Aurangabad, March 5, 2013: Varroc Group has announced its acquisition of the Visteon equity interest in its China-based lighting joint venture, Visteon TYC Auto Lamps Co. TYC Brothers Ltd of Taiwan will remain the 50 percent partner in the new entity, named Varroc TYC Auto Lamps Co Ltd.

Speaking about the new venture, Tarang Jain, managing director, Varroc Group, said: “I am pleased with the acquisition completion. The transaction completes an important step in our strategic plan to focus on our core businesses and expand our footprint into China, the world’s largest automotive market.”

Varroc Group’s China entity will be part of Varroc Lighting Systems, which was recently formed after Varroc Group’s acquisition of Visteon’s global automotive lighting business. The purchase price for the equity stake of VTYC, on a cash-and debt-free basis, was approximately US$20 million (Rs 109 crore). The deal includes manufacturing and engineering facilities in Changzhou and Chongqing.

The sales revenue in 2012 for the China operations were US$ $130 million (Rs 713 crore), encompassing a wide range of exterior lighting products supplied to global vehicle manufacturers, including front and rear lighting systems. In terms of workforce, the China operations constitute about 1,450 manufacturing, engineering and administrative employees.