STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 24, 2002--GE Capital, through its Commercial Real Estate and Commercial Finance businesses, and DaimlerChrysler (Global Share: DCX) announced today that they have entered into a definitive agreement for GE Capital to acquire DaimlerChrysler Capital Services' Commercial Real Estate and Asset Based Lending portfolios.
DaimlerChrysler Capital Services is a wholly owned subsidiary of DaimlerChrysler. Under the terms of the agreement, DaimlerChrysler will receive $1.2 billion for the portfolios in an all cash transaction.
This acquisition provides GE Capital with:
- Portfolios that include property types in which GE Capital Real Estate has extensive expertise. The Commercial Real Estate Portfolio consists primarily of office and apartment properties as well as hotels, golf courses and marinas. - Superior high-quality portfolios of assets that match well with existing GE Capital Commercial Finance portfolios. The Asset Based Lending portfolio consists of diverse mid-size loans. - Immediate accretion and strong long term ROI.
"GE Capital's balance sheet and long experience in real estate lending and investment put us in a strong position to manage these portfolios," said Michael Pralle President and CEO of GE Capital Real Estate. "They complement our current activities by providing us with properties that fit well with our existing portfolios."
The transaction is anticipated to close in the first quarter of 2002 and is not subject to further government or regulatory approvals.
The portfolios were sold in a competitive process set up by Goldman Sachs who also acted as exclusive financial advisor to DaimlerChrysler in the transaction. Lazard acted as exclusive financial advisor to GE Capital.
About GE Capital:
GE Capital, with assets of more than $410 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, Conn., 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 47 countries around the world. GE is a diversified services, technology and manufacturing company with operations worldwide.
About DaimlerChrysler Capital Services:
DaimlerChrysler Capital Services, based in Norwalk, Conn., is a unit of DaimlerChrysler Services, the financial services division of DaimlerChrysler Corp.
Caution Concerning Forward-Looking Statements: This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global economic, business, competitive market and regulatory factors or failure of the transaction described to be completed for any reason. More detailed information about those factors is contained in GE's filings with the Securities and Exchange Commission.
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CONTACT:
For GE:
For Media: Peter Stack, GE Capital, 203/357-4502
For Investors: Richard Wacker, GE, 203/373-2468
or
For DaimlerChrysler:
Thomas F. Froehlich, DaimlerChrysler AG 49-711-17-93311
Doug Rozman, DaimlerChrysler Capital Services,
203/845-7599
Jeff Wilson
GE Capital Corporate Finance
[email protected]
1-203-749-6340