STAMFORD, Conn.--(BUSINESS WIRE)--July 6, 2005--GE Commercial Finance, the business-to-business financial services unit of General Electric (NYSE: GE), today announced it has agreed to acquire approximately $1 billion in aircraft assets from CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance company. The acquisition expands GE's corporate aircraft market reach, diversifies its customer base and creates additional cross-selling opportunities.
The sale of a majority of the assets closed on June 30, 2005. The balance of the sold assets will be transferred during the third quarter of 2005. Terms of the deal were not disclosed.
The acquisition by GE Commercial Finance includes the leases and loans on approximately 380 aircraft from CIT's corporate aircraft portfolio. The acquired assets will be integrated into Commercial Finance's existing Corporate Aircraft business, an industry leader in the leasing and loan financing of corporate aircraft and helicopters worldwide.
"We're confident we have the necessary scale, resources and commitment to ensure the highest quality of service to these new customers," said Paul Bossidy, Senior Vice President, GE Commercial Finance. "In addition, we will provide them with an entry into the entire GE company, delivering an extensive range of both financial and non-financial products and services in an effort to address whatever specific business needs they might have."
"GE is a business steeped in a rich tradition of service in the aviation industry. This acquisition allows us to build upon this core competency, while adding substantial new customer relationships in this sector," said Dave Labrozzi, Senior Vice President, GE Commercial Finance, Corporate Aircraft.
About CIT
CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has nearly $60 billion in assets under management and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries. CIT, a Fortune 500 company and a component of the S&P 500 Index, holds leading positions in vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and asset-based lending. With its Global Headquarters in New York City and Corporate Offices in Livingston, New Jersey, CIT has approximately 6,000 employees in locations throughout North America, Europe, Latin and South America, and the Pacific Rim. For more information, visit http://www.cit.com.
About GE Commercial Finance, Corporate Aircraft
With more than $24 billion of corporate aviation underwriting experience worldwide, GE Commercial Finance, Corporate Aircraft is an industry leader in the leasing and loan financing of corporate aircraft and helicopters. For more information, visit the business Web site at www.gecorporateaircraft.com. (Please note that the business is a separate unit from GE Commercial Aviation Services (GECAS) and GE Transportation, Aircraft Engines.)
About GE Commercial Finance
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over $230 billion and is headquartered in Stamford, Connecticut. 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.
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 political, economic, business, competitive, market and regulatory factors. More information about those factors is contained in GE's filings with the Securities and Exchange Commission.
Contacts
GE Commercial Finance
Mike Sergott, 203-796-5678
[email protected]
Jeff Wilson
GE Capital Corporate Finance
[email protected]
1-203-749-6340