STAMFORD, Conn.--(BUSINESS WIRE)--Aug. 5, 2003--
-- Strategic Fit of Products and Services
-- Expands GE's Distribution Finance Platform
-- Enhances Key GE Commercial Finance Segments
GE Commercial Finance, the business-to-business financial services unit of the General Electric Company (NYSE: GE), announced today it has agreed to acquire most of Transamerica's commercial finance business. The transaction will add approximately $8.5 billion in managed assets to GE Commercial Finance's $200 billion asset portfolio.
GE Commercial Finance will acquire Transamerica units that provide distribution financing for manufacturers and dealers of industrial, consumer and recreational products as well as leasing and commercial loan financing for a wide range of sectors, including equipment, real estate and international structured finance. The units have approximately 1,700 employees and serve customers primarily in North America and Europe.
Under terms of the agreement, Transamerica's parent, Aegon N.V. (NYSE: AEG), will receive cash proceeds of approximately $5.4 billion, including a premium on managed assets of .3 billion. GE will assume trade liabilities and third-party debt of .9 billion and a securitized portfolio of $2.5 billion.
"Transamerica has long been a respected participant in the commercial financing arena," said Mike Neal, president and CEO of GE Commercial Finance.
"We look forward to integrating into our business its strong customer relationships, experienced employees and reputation for excellence. This is a meaningful complement to GE Commercial Finance that will facilitate growth in several important industry segments."
GE Commercial Finance offers businesses of all sizes an array of financial services and products worldwide. With approximately $200 billion in assets and an expertise in the mid-market segment, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. A unit of the General Electric Company, GE Commercial Finance is headquartered in Stamford, Connecticut, USA. GE is a diversified services, technology and manufacturing company with operations worldwide.
The transaction, which is subject to customary conditions and receipt of regulatory approvals, is expected to close by the end of the year. Closing is also subject to the amendment or waiver of certain provisions of Transamerica Finance Corporation's debt indentures by the required percentage of Transamerica's outstanding public debt holders.
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.
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