The Varroc Group has announced its acquisition of the Visteon equity interest in its China-based lighting joint venture, Visteon TYC Auto Lamps Co. Ltd. TYC Brothers Ltd. of Taiwan will remain the 50 per cent partner in the new entity named Varroc TYC Auto Lamps Co. Ltd.
Mr. Tarang Jain, Managing Director, Varroc Group, commenting on the new venture, 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 about $20 million. The deal includes manufacturing and engineering facilities in Changzhou and Chongqing.
The sales revenue in 2012 for the China operations were $130 million, encompassing a wide range of exterior lighting products supplied to global vehicle manufacturers, including front and rear lighting systems. In total, about 1,450 manufacturing, engineering and administrative employees are part of China operations.
Varroc Lighting Systems, registered in the Netherlands and headquartered in Plymouth, Michigan, is a wholly-owned entity within the Varroc Group. It is a global leader in automotive exterior lighting products.
Based in Aurangabad, the Varroc Group comprises polymer, electrical & electronics, and metallic divisions providing full design, development and manufacturing.