GE to Sell Bulk of U.S. Restaurant Finance Assets in Separate Transactions to Three Buyers
June 27 2016 - 5:00PM
Business Wire
- Aligns with GE’s Strategy to Create
Simpler, More Valuable Industrial Company
- Represents Last Major U.S. Platform
Transaction in GE Capital Transformation
- GE Capital’s Announced Sales Now Total
Approximately US$180 Billion (ENI)
GE (NYSE:GE) has entered into separate agreements with three
buyers to sell the bulk of GE Capital’s U.S. restaurant franchise
financing assets. The combined transactions represent ending net
investment (ENI) of approximately US$1.4 billion as of first
quarter 2016 and are collectively expected to release approximately
US$0.2 billion of capital to GE. The transactions are expected to
close in the third quarter this year.
Under these agreements, each buyer will acquire assets based on
the regional headquarters location of the respective Borrowers.
First Horizon National Corporation, a Tennessee-based bank with
assets of approximately $27 billion, will acquire assets in the
Southwest and Southeast. Wintrust Financial Corporation, an
Illinois-based bank with approximately $23 billion in assets, will
acquire assets in the Midwest and part of the West. Finally,
Sterling National Bank, which is headquartered in New York and has
approximately $13 billion in assets, will acquire assets in the
East. The remainder of assets in the West will be sold separately.
Further details on the transaction terms are not being
disclosed.
“As we continue to execute on our strategy to sell GE Capital’s
assets that are not linked to GE, the sale of these restaurant
financing assets represents our last major U.S. platform
transaction,” said GE Capital Chairman and CEO Keith Sherin. “We
are pleased to reach separate agreements with three strong buyers
that will be able to continue to serve our customers and restaurant
brands as they continue to grow,” he added.
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.
Since the announcement in April 2015, GE Capital has signed
agreements for approximately US$180 billion and has closed
approximately US$156 billion of those. In total, GE plans to sell
approximately $200 billion of GE Capital businesses worldwide and
expects to be largely complete with the process by the end of 2016.
GE Capital expects to deliver about $35 billion of dividends to GE
under this plan, subject to regulatory approval.
Barclays and Moelis & Company served as financial advisors
to GE. Hogan Lovells served as transaction counsel to GE.
About GE
GE (NYSE: GE) is the world’s Digital Industrial
Company, transforming industry with software-defined
machines and solutions that are connected, responsive and
predictive. GE is organized around a global exchange of
knowledge, the "GE Store," through which each business shares and
accesses the same technology, markets, structure and intellect.
Each invention further fuels innovation and application across our
industrial sectors. With people, services, technology and scale, GE
delivers better outcomes for customers by speaking the language of
industry. www.ge.com
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amount of information about GE, including financial and other
information for investors. GE encourages investors to visit these
websites from time to time, as information is updated and new
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
Capital:Amrita Mainthia, +1
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