GE Commercial Finance, the business-to-business financial services unit of General Electric has agreed to purchase approximately $2 billion in assets from Boeing Capital Corporation. The agreement is subject to normal regulatory review and expected to close in the second quarter of 2004.
The acquisition by GE Commercial Finance includes secured loans as well as financing and operating leases on various kinds of equipment, such as trucks, manufacturing equipment, corporate aircraft and marine vessels. The assets, most of which are in the United States, will be folded into units of GE Commercial Finance that handle equipment, transportation and energy financing and leasing.
“This agreement brings us over 170 customers, and we look forward to doing a terrific job for them,” said Mike Neal, president and CEO, GE Commercial Finance. “The acquisition of a seasoned, balanced equipment portfolio is very much in line with our growth plans for 2004.”
Boeing Capital President Walt Skowronski said: “We are extremely pleased with the outcome of the transaction with GE Commercial Finance. This further advances our strategic priority to support the sale of Boeing products and services by arranging, structuring or providing financing. While the commercial finance business has been a solid contributor to our success, we believe it will be better positioned for growth within the GE Commercial Finance portfolio.”
