GE buying Bombardier’s inventory finance unit
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GE Commercial Finance, the business-to-business financial services unit of the General Electric Co., has agreed to acquire Bombardier Capital’s Inventory Finance Division.
The agreement calls for GE Commercial Finance to pay about $1.4 billion in cash and assume $1 billion in debt and other liabilities related to the business.
The price represents a gross pre-tax premium of $225 million over Bombardier Capital’s $2.2 billion Inventory Finance Division.
Bombardier Capital, which is part of the financing division of Bombardier Inc., provides floor plan in the marine, recreational products, recreational vehicles and manufactured housing industries. BCIFD has relationships with more than 4,500 dealers and more than 500 manufacturers in the United States and Canada.
“GE and Bombardier enjoy a long history together and continue to be strategic partners in multiple industries,” said Mike Neal, president and CEO of GE Commercial Finance, in a statement. “The acquisition of Bombardier’s inventory finance business further enhances our ability to provide more business solutions to more customers.”
Bombardier Capital says the transaction is a continuation of its portfolio wind-down, initiated in 2001.
After the closing, expected in the second quarter, GE Commercial Finance will assume the servicing obligations of Bombardier Capital. Bombardier Capital will reduce the recorded debt and other net liabilities related to the inventory financing business by about $1.6 billion
GE Commercial Finance, the business-to-business financial services unit of the General Electric Co., has agreed to acquire Bombardier Capital’s Inventory Finance Division.
The agreement calls for GE Commercial Finance to pay about $1.4 billion in cash and assume $1 billion in debt and other liabilities related to the business.
The price represents a gross pre-tax premium of $225 million over Bombardier Capital’s $2.2 billion Inventory Finance Division.
Bombardier Capital, which is part of the financing division of Bombardier Inc., provides floor plan in the marine, recreational products, recreational vehicles and manufactured housing industries. BCIFD has relationships with more than 4,500 dealers and more than 500 manufacturers in the United States and Canada.
“GE and Bombardier enjoy a long history together and continue to be strategic partners in multiple industries,” said Mike Neal, president and CEO of GE Commercial Finance, in a statement. “The acquisition of Bombardier’s inventory finance business further enhances our ability to provide more business solutions to more customers.”
Bombardier Capital says the transaction is a continuation of its portfolio wind-down, initiated in 2001.
After the closing, expected in the second quarter, GE Commercial Finance will assume the servicing obligations of Bombardier Capital. Bombardier Capital will reduce the recorded debt and other net liabilities related to the inventory financing business by about $1.6 billion
posted by SellABoat.Com @ 10:09 PM
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