STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 21, 2005--Furthering its growth strategy, GE Consumer Finance, the consumer lending unit of General Electric Company (NYSE:GE), today announced that it has entered into an agreement to purchase and manage the private label credit card assets of Belk, Inc., the nation's largest privately owned department store company. Belk operates 278 stores in 15 Southeast and Mid-Atlantic states under the names Belk, McRae's and Proffitt's.
GE Consumer Finance will acquire approximately $300 million in private label credit card receivables from Belk and $200 million from a third-party provider. Belk and GE Consumer Finance agreed to a 10-year alliance in which GE will provide credit marketing and analytic support, credit servicing and customer care for Belk's 4.2 million retail cardholders.
The acquisition also includes approximately 160 Belk employees who will join GE Consumer Finance and will remain in Belk's hometown of Charlotte, NC. The acquisition is expected to close in the next few months, subject to regulatory approval.
"We're excited about working with Belk, a strong retail partner with a proud family heritage," said Mark W. Begor, president and CEO, GE Consumer Finance-Americas. "This new partnership opens up great opportunities to offer enhanced products, benefits and value to Belk's customers while helping drive both Belk's and GE's growth."
"Our new alliance with GE will provide Belk shoppers even better financing options with the same customer-friendly service that Belk is known for," said Tim Belk, chairman and CEO of Belk, Inc. "We are particularly excited about the marketing expertise that GE will make available to us, and we look forward to a long-term mutually beneficial partnership."
About GE Consumer Finance
GE Consumer Finance, a unit of General Electric Company (NYSE: GE) with $150 billion in assets, is a leading provider of credit services to consumers, retailers and auto dealers in 47 countries around the world. GE Consumer Finance, based in Stamford, Conn., offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans and credit insurance. More information can be found online at www.geconsumerfinance.com.
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.
About Belk, Inc.
Charlotte, NC-based Belk, Inc. owns and operates 278 stores, including 18 Proffitt's stores and 25 McRae's stores, located in 15 states in the Southeast and Mid-Atlantic regions of the United States. Founded in 1888 by William Henry Belk in Monroe, NC, it is the nation's largest privately owned department store company.
Contacts
GE Consumer Finance
Mike Ettlemyer, 203-585-6791
[email protected]
or
Belk, Inc.
Steve Pernotto, 704-426-1890
[email protected]
Cristy Williams
[email protected]
678.518.2596