FAIRFIELD, Conn.--(BUSINESS WIRE)--July 11, 2006--GE announced today two transactions that accelerate the Company's repositioning of its Industrial business to unlock additional value for investors.
In the first announcement, GE Consumer & Industrial and Rexel, the world's largest electrical supplies distributor, announced a $725 million agreement for Rexel to acquire GE Supply, GE's electrical distribution business. The transaction was signed today and is expected to close in the third quarter of 2006.
In the second announcement, GE and Penske Corporation announced that Penske has purchased an additional 9% limited partnership interest in Penske Truck Leasing (PTL) from GE Capital Corporation - expanding Penske's ownership to 30%. At the same time, Penske and GE have agreed to extend the PTL partnership through 2018.
"Six months ago, we brought together a collection of diverse industrial business into an integrated, streamlined GE growth engine," said John G. Rice, GE vice chairman and president of GE Industrial. "Today's announcements show the result of that action - maximizing efficiency, expanding returns, and delivering additional value for GE and its partners."
GE Supply is a leading distributor of electrical products produced by GE and more than 200 other manufacturers. The business is headquartered in Shelton, Conn., in the U.S., and employs approximately 2,500 people in more than 150 locations around the world.
The sale is a continuation of GE's strategy to focus on innovative, technology-oriented, and higher-return enterprises that are critical to the GE brand. Divesting of GE Supply will enable GE to accelerate its growth by reinvesting the proceeds from the sale into its core operations and fund restructuring.
"The GE Supply team has done a great job of growing the business and this is a great fit," Rice said. "The sale also ensures that GE Supply will remain a strategic distribution channel for GE products. This is a big win for us and for the customers that count on GE Supply for their GE product needs."
Penske and GE established the PTL partnership in 1988, with Penske as the general partner and GE a limited partner. Today's transaction closed on June 30, 2006, and resulted in GE owning 70% and Penske 30% of PTL. Over time, both parties' expectation is a target of a 50/50 ownership structure.
"We are excited about this opportunity to increase our investment in one of our core businesses. The partnership with GE has been very successful and we look forward to the continuance of the relationship in the years to come" said Roger Penske, Chairman of PTL, and a member of GE's Board of Directors.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
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Contacts
General Electric, Fairfield
Peter O'Toole, 203-912-3233 (mobile)
or
General Electric, Consumer & Industrial
Deborah Wexler, 203-944-3101 (office)
502-396-1558 (mobile)
or
General Electric, Equipment Services
David Frail, 203-961-2281 (office)
Britta Kons
GE Healthcare Global Services
[email protected]
1-203-400-1892