GE Capital to Acquire Time Retail Finance From Kingfisher PLC And Enter Into Agreements With Their Leading UK Retailers - B&Q And Comet LONDON--January 28, 2002--GE Capital, the financial services arm of the General Electric Company, announced today that its Global Consumer Finance division will acquire Kingfisher plc's in-house finance operation, Time Retail Finance, for (pound)149 million (based on the balance sheet of 31st January 2001).
The acquisition is in conjunction with the formation of service agreements with B&Q and Comet to provide retail financial services to their customers. For GE Capital, these transactions will establish valuable relationships with two high growth DIY and Electrical retailers, and broaden its consumer finance customer base. B&Q and Comet have 565 stores in the UK.
Charles Alexander, President of GE Capital Europe, said: This is a great fit for us. Through these agreements, we will expand our consumer finance asset base and establish relationships with two of the UK's most successful retail brands. In addition, we will use Global Consumer Finance's infrastructure, risk management, and data base analysis to ensure that these new clients and customers receive the highest quality financial services available on the market.
We are excited about the opportunity over the coming months to work closely with the retail management teams in order to develop and introduce innovative products and services for both B&Q and Comet customers.
Commenting on the sale, Kingfisher Chief Executive Sir Geoff Mulcahy, said: The sale of Time Retail Finance will allow Kingfisher to reduce its borrowings while crystallizing value for our shareholders. This is another step taken during a year of delivery that has left us with a strengthened balance sheet and focussed on our core retailing strengths.
Notes to Editors:
About GE Capital
GE Capital, with assets of US$425 billion, is a global, diversified financial services company grouped into six key operating segments comprised of 25 businesses. A wholly owned subsidiary of General Electric Company, GE Capital, based in Stamford, Connecticut, USA, provides a variety of consumer services, such as credit cards and life and auto insurance; mid-market financing; specialized financing; specialty insurance; equipment management, and specialized services, to businesses and individuals in 45 countries around the world. GE is a diversified services, technology and manufacturing company with operations worldwide.
GE Capital Global Consumer Finance
GE Capital Global Consumer Finance is one of the leading worldwide suppliers of consumer credit and insurance services. It is a preferred provider of retail finance in the UK, with clients such as Debenhams and House of Fraser, and also offers selected personal finance products to its customers.
About Kingfisher
Kingfisher is one of Europe's leading retailers, operating in the international Home Improvement, Electrical and Furniture markets. More than half of the Group's turnover arises outside the UK, making it the UK's most international retailer. Kingfisher employs more than 90,000 people in over 1,300 stores across 16 countries and includes some of the best known retail brands in Europe, including B&Q, Castorama, Comet, Darty, and BUT.
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