GE Closes Sale of Franchise Finance U.S. Hotel Business to Western Alliance
April 25 2016 - 7:00AM
Business Wire
- Progress Continues in Effort to Create
Smaller, More Focused GE Capital
- Closings to date reach $148 billion;
signings total $166 billion
GE (NYSE:GE) has completed the previously announced sale of GE
Capital’s Franchise Finance U.S. hotel business to Western Alliance
Bank, a wholly owned subsidiary of Western Alliance Bancorporation
(NYSE: WAL). The sale includes approximately $1.3 billion in ending
net investment (ENI) and the majority of the hotel business
employees. The business provides real estate financing to owners of
limited service hotel properties.
“We continue to make strong progress on closing our previously
announced sales as we work to divest the majority of GE Capital
assets,” said Keith Sherin, GE Capital chairman and CEO. “We wish
our Franchise hotel business employees all the best as they
transition to Western Alliance.”
Today’s closing releases approximately $0.2 billion of capital.
GE Capital believes it is on track to deliver about $35 billion of
dividends to GE under this plan, subject to regulatory
approval.
As previously announced, GE is focusing on its high-value
industrial businesses and is selling most GE Capital assets. GE
will retain the financing verticals that relate directly to GE’s
industrial businesses. The total closed transactions to date are
now approximately $148 billion in ENI and signed agreements have
reached more than $166 billion of the more than $200 billion in ENI
that GE Capital plans to sell.
About GE
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information is posted.
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matters that are, to different degrees, uncertain. For details on
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Investors:GEMatt Cribbins,
+1-203-373-2424matthewg.cribbins@ge.comorMedia:GE
CapitalSusan Bishop, +1-203-750-5362susan.bishop@ge.com
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