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Acquisition adds $1.6 billion in assets, financing relationships with 18,000 small and mid-sized business locations in core retail segments.
GE Capital announced today that it has acquired sales finance portfolios from Citi Retail Partner Cards. The purchased portfolios provide consumer financing programs and related services to small to mid-sized retailers and dealers in four main segments that are core to GE Capital’s Sales Finance business: Home Furnishings; Flooring; Consumer Electronics and Heating, Ventilation and Air Conditioning (HVAC).
The Citi portfolios being acquired include nearly three-dozen retail partner relationships that collectively represent more than 18,000 small to mid-sized Main Street merchant locations across the United States.
“This acquisition is right in line with GE Capital’s goal to invest in core, high performing growth businesses where we have deep experience and broad capabilities to grow. Sales Finance is core to GE Capital and has delivered great results, including through the downturn. This strategic transaction, which we expect to be immediately accretive, makes a great deal of sense for GE Capital, adding high-quality assets and merchant relationships to what has been a core growth business for us for decades,” said Mark Begor, president and CEO of GE Capital Retail Finance.
Under terms of the agreement, Citi will provide interim servicing until GE Capital Sales Finance completes the conversion of merchants and cardholder accounts to its own system. Financial terms of the transaction, which has been approved by regulators, were not disclosed.
“Now, more than ever, retailers and their customers want the attractive financing options we provide. Our programs help drive business and enable consumers to budget and pay for purchases over time,” said Glenn Marino, president and CEO of GE Capital’s Sales Finance business. “This acquisition broadens our relationships with retailers and dealers in segments where we have done quite well and have the expertise to manage and smartly grow.”
About GE Capital
GE Capital (NYSE: GE) is one of the world’s largest providers of credit. For over one million businesses, large and small, GE Capital provides financing to purchase, lease and distribute equipment, as well as capital for real estate and corporate acquisitions, refinancings and restructurings. For our 100+ million consumer customers, GE Capital offers credit cards, retail sales finance programs, home, car and personal loans and credit insurance. For more information, visit gecapital.com or follow company news via Twitter (@GECapitalNews).
Based in Kettering, Ohio, GE Capital’s Sales Finance business goes to market as GE Money Sales Finance. It provides credit card programs and financial services to consumers currently at more than 215,000 retail locations through dealers; national, regional and independent retailers; associations; contractors; manufacturers; healthcare practices; and service providers in nearly 20 industries including: automotive, consumer electronics and appliances, elective health care, floor covering, home design and improvement, home furnishings, jewelry, music, powersports, outdoor power equipment and sporting goods. More information can be found at gemoney.com, twitter.com/GEMoneyUS, gecapital.com and twitter.com/gecapital.
Caution Concerning Forward-Looking Statements
This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain, which may cause actual future results to be materially different than those expressed in these forward-looking statements. We do not undertake to undertake to update these forward-looking statements.
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