Diversified industrial manufacturer Eaton Corp. has reached an agreement to sell its automotive Vehicle Switch/Electronics Division (VS/ED) to Delphi Automotive Systems for $300 million. Eaton said the proceeds would be used to reduce short-term debt.
Eaton said the VS/ED business no longer fit the company's longer-term strategic objectives. The company noted that the vehicle interior segment is consolidating rapidly in response to an industry-wide move toward integrated cockpit systems solutions, and that Eaton was not in a position to lead the consolidation.
"We are pleased that our VS/ED employees will be joining a company with the industry presence and reputation that Delphi maintains,” said Stephen M. Buente, Eaton senior vice president and group executive for automotive. “VS/ED has an excellent workforce and a culture that is very compatible with Delphi's, and it is our hope and expectation that this transaction will be beneficial to both franchises."
VS/ED, which is headquartered in Downers Grove, Ill., employs about 3,850 people at eight North American, South American and European facilities.
VS/ED manufactures a wide range of electro-mechanical and mechatronic controls, including column switches; control modules for windows, doors and other customer courtesy uses; electronic controllers; instrument panel and console switches; lighting centers; transmission switches; and security, under-the-hood and door jamb switches.