STAMFORD, Conn.--(BUSINESS WIRE)--Sept. 16, 2002--GE Commercial Finance, through its Vendor Financial Services (VFS) business and Deutsche Bank AG, announced today that they have entered into a definitive agreement for GE Commercial Finance to acquire Deutsche Financial Services' commercial inventory financing businesses.
Under the terms of the agreement, Deutsche Bank will receive cash proceeds equal to approximately US-$ 2.9 billion. This includes the purchase price as well as the repayment of debt. The transaction is expected to close in the fourth quarter, subject to customary closing conditions and regulatory approval.
The Deutsche Financial Services (DFS) businesses involved in this transaction provide commercial inventory financing for over 1,000 manufacturers and nearly 14,000 dealers of industrial equipment, technology products and a wide variety of recreational vehicles. The businesses with about 1,200 employees serve markets in the U.S., Europe and Canada. Excluding securitized receivables of US-$ 2.7 billion, the acquisition provides GE Commercial Finance with US-$ 2.7 billion of net funded receivables. The assets and operations of DFS's manufactured housing business and the consumer financing business are excluded from the transaction.
"DFS is a premier provider of inventory finance to manufacturers and dealers globally. Their vendor partners and dealer relationships complement and extend the range of products and services that VFS provides to its customers today," said Bill Cary President and CEO of GE Vendor Financial Services. "Strong cross-selling opportunities should drive growth opportunities for both VFS and DFS."
"This is an important further step in our strategy to focus on core businesses," said Josef Ackermann, Chairman of the Group Executive Committee of Deutsche Bank.
About GE Commercial Finance
GE Commercial Finance offers businesses of all sizes an array of financial services and products worldwide. With more than $180 billion in assets, and a particular expertise with mid-market companies, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. It also offers loans and financing leases for major capital assets, including transportation financing solutions; industrial facilities and equipment, and infrastructure-related facilities; commercial and residential real estate loans and investments; and loans to and investments in public and private entities in diverse industries. GE Commercial Finance is headquartered in Stamford, Connecticut. GE is a diversified services, technology and manufacturing company with operations worldwide.
About Deutsche Bank
With about EUR 900 billion in assets and approximately 84,500 employees, Deutsche Bank offers its 12 million clients unparalleled financial services in 75 countries throughout the world. The Bank aspires to be a leading global provider of integrated financial solutions for demanding clients and the pre-eminent bank in Germany generating exceptional value for its shareholders and people.
Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private & business banking franchise in Germany and other selected countries in Continental Europe.
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 Media
Peter Stack, GE Commercial Finance, 1 203-357-4502
or
For Investors
Richard Wacker, GE, 1 203-373-2468
or
For Media
Dr. Ronald Weichert, Deutsche Bank, +49 (69)910-38664
or
For Investors
Dr. Wolfram Schmitt, Deutsche Bank, +49(69) 910-35974
Jeff Wilson
GE Capital Corporate Finance
[email protected]
1-203-749-6340