GE Sells 14.4% Stake in Penske Truck Leasing to Penske Automotive Group
July 28 2016 - 6:58AM
Business Wire
- Transaction Aligns with GE’s Strategy
to Create Simpler, More Valuable Industrial Company
- GE Capital’s Announced Sales Now Total
Approximately US$189 Billion (ENI)
GE (NYSE:GE) announced today that it has signed and closed the
sale of a 14.4% limited partner interest in Penske Truck Leasing
Co., L.P., a full-service truck leasing, rental, and logistics
business, to Penske Automotive Group, Inc. The sale represents
ending net investment (ENI) of approximately $0.4 billion and
leaves GE with a 15.5% limited partner interest in the business. In
addition to the interests owned by Penske Automotive Group and GE,
Penske Truck Leasing is owned by Penske Corporation and Mitsui.
“As we continue to execute on our strategy to sell our
businesses that aren’t linked to GE’s industrial businesses, we’re
pleased to announce this agreement for the sale of a significant
portion of our remaining stake in Penske Truck Leasing to our
long-time partner, Penske Automotive Group,” said Keith Sherin, GE
Capital chairman and CEO. “Penske Truck Leasing is a leading
provider of truck leasing and rental services in North America and
is a well-established global provider in the logistics
business.”
As previously announced, GE is focusing on its high-value
industrial businesses and is selling most of GE Capital’s assets.
GE will retain the financing verticals that relate directly to GE’s
industrial businesses.
Including this transaction, and since the announcement in April,
2015, GE Capital has signed agreements for approximately US$189
billion and has closed approximately US$168 billion of those deals.
GE Capital plans to sell approximately $200 billion of GE Capital
businesses worldwide and expects to have largely completed the
process by the end of 2016. GE Capital believes it is on track to
deliver about $35 billion of dividends to GE under this plan,
subject to regulatory approval.
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
GE’s Investor Relations website at www.ge.com/investor and our
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and Twitter accounts, including @GE_Reports, contain a significant
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.
Caution Concerning Forward-Looking Statements:
This document contains "forward-looking statements" – that is,
statements related to future events that by their nature address
matters that are, to different degrees, uncertain. For details on
the uncertainties that may cause our actual future results to be
materially different than those expressed in our forward-looking
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see ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements as
well as our annual reports on Form 10-K and quarterly reports on
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Investors:Matt Cribbins, +1
203-373-2424matthewg.cribbins@ge.comorMedia:Ned Reynolds, +1
203-837-0699ned.reynolds@ge.com
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