GE Completes Sale of U.S. Fleet Services Business to Element Financial Corporation
August 31 2015 - 5:31PM
Business Wire
GE [NYSE:GE] announced today that it has completed the
previously announced sale of its U.S. fleet services business,
representing aggregate ending net investment (ENI) of approximately
$4.4 billion, to Element Financial Corporation (TSX:EFN) in a
transaction valued at approximately $5 billion. Separately, the
previously announced sale of GE’s Mexican, Australian and New
Zealand fleet businesses to Element is expected to close at the end
of the third quarter, and the sale of GE’s European fleet
businesses to Arval, a fully-owned subsidiary of BNP Paribas, is
expected to close in the fourth quarter.
“We are pleased to complete the sale of our U.S. fleet services
business to Element,” said Keith Sherin, GE Capital chairman and
CEO. “It is another important step as we continue to execute on our
plan to sell most of the assets of GE Capital,” added Sherin.
As previously announced, GE is embarking on a strategy to focus
on its high-value industrial businesses and is selling most GE
Capital assets. GE and its Board of Directors have determined that
current market conditions are favorable to pursue disposition of
these assets. GE will retain the financing “verticals” that relate
to GE’s industrial businesses.
The U.S. fleet services transaction releases approximately $0.6
billion of capital. GE Capital believes it is on track to deliver
about $35 billion of dividends to GE under this plan, as previously
announced (subject to regulatory approval).
Mr. Sherin concluded, “We wish our U.S. fleet services team a
successful future as they join Element.”
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