Cerberus has sold Reydel Automotive Group to a subsidiary of Samvardhana Motherson Automotive Systems Group B.V. for $201 million. Reydel Automotive is a maker of smart interiors for cars.
NEW YORK, Aug. 3, 2018 /PRNewswire/ — Cerberus Capital Management, L.P., on behalf of its affiliates (“Cerberus”), today announced the completion of the previously disclosed sale of its portfolio company Reydel Automotive Group (“Reydel”) to a subsidiary of Samvardhana Motherson Automotive Systems Group B.V. for a total purchase price of $201 million.
Cerberus acquired Reydel from Visteon Corporation (“Visteon”) in 2014 as part of Visteon’s strategic realignment. The transaction represented a complex corporate carve-out of Visteon’s global automotive interior business involving 20 operating plants, related R&D, and sales facilities across 16 countries. Cerberus partnered with Visteon to provide transactional support, a multi-stage carve-out strategy, and a turnaround plan for the standalone entity. Cerberus re-branded the standalone entity Reydel Automotive Group and led a transformation of the business that included operational improvements focused on new and proactive management, process and workflow optimization, manufacturing performance, and client relationship enhancements.
As a result of Cerberus’s ownership, Reydel meaningfully improved its financial performance, increasing EBITDA from $(16) million in 2013 to $68 million in 2017. From 2015 to 2017, the key years of Cerberus’s carve-out and turnaround plan execution, Reydel grew EBITDA by nearly 60% on a compound annual basis.
“Reydel was a successful partnership that leveraged Cerberus’s experience with global automotive businesses, highly complex corporate carve-outs, and operational turnarounds,” said Dev Kapadia, Senior Managing Director of Cerberus and Co-Chair of the Cerberus Private Equity Investment Committee. “We were able to transform Visteon’s global automotive interior business into a standalone, leading global supplier of interior components in the automotive industry. We are pleased to complete the sale to Samvardhana Motherson Automotive Systems Group, a strategic combination that positions Reydel for its next stage of growth.”
Founded in 1992, Cerberus is a global leader in alternative investing with approximately $34 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.