Acquisition Significantly Enhances GE Commercial Finance's Transportation Finance Business
GE Commercial Finance, the business-to-business financial services unit of the General Electric Company (NYSE: GE), today announced that it has agreed to acquire CitiCapital's Transportation Financial Services Group (CTFSG). A subsidiary of Citigroup, CTFSG provides financing, leasing and asset based lending to the commercial trucking industry. Under terms of the agreement, Citigroup will receive cash proceeds of approximately $4.4 billion.
"The acquisition makes a lot of sense for us. The transportation finance sector is one that we know well and have the capabilities to grow," said Mike Neal, President and CEO of GE Commercial Finance. "This acquisition enhances our financing capabilities in this segment and broadens our relationships with truck manufacturers and dealers. The business will remain based in Dallas, Texas and we look forward to integrating with CTFSG's highly-experienced team."
CTFSG finances approximately 196,000 heavy and medium duty commercial trucks and trailers through a variety of customer channels, including truck and trailer dealers, commercial fleets and truck owners/operators. CTFSG has approximately 600 employees and serves more than 49,000 customers throughout North America.
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over US$230 billion and is headquartered in Stamford, Connecticut, USA. General Electric (NYSE: GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. For more information, visit www.ge.com.
The agreement is subject to certain regulatory approvals and may close as early as the end of 2004.
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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