STAMFORD, Conn.--(BUSINESS WIRE)--Feb. 7, 2006--GE Consumer Finance today announced that GE Money, the Canadian consumer lending unit of General Electric Company (NYSE:GE) and Hudson's Bay Company (TSX: HBC), Canada's oldest company and largest department store retailer, have entered an acquisition agreement and 10-year alliance in which GE Money will purchase the private label credit card and related financial services assets of Hudson's Bay Company (Hbc).
Under the 10-year alliance, GE Money will provide credit marketing and analytic support, credit servicing and customer care for Hbc's 3.1 million retail cardholders. Hbc customers will be able to continue to use their Hbc cards, and will continue to enjoy access to the Hbc rewards program and other cardholder benefits as they do today, as well as a broader range of financial products in the future.
The acquisition will also include the transfer of approximately 650 Hbc employees directly involved in Hbc's Financial Services business to GE Money. These employees will continue to work at their current locations, at operations centers in Montreal, Toronto and Vancouver. GE Money currently has 600 employees at its headquarters in Mississauga and its operations center in Edmonton.
"We are honored to work with a retailer that has the history and tradition in Canada of Hudson's Bay Company," said Mark W. Begor, president and CEO, GE Consumer Finance-Americas. "This new alliance opens up great opportunities to offer enhanced products, benefits and value to Hudson's Bay Company customers while helping drive growth at both Hbc and GE Consumer Finance in Canada."
"This agreement is a significant step forward as our business continues to grow in Canada," said Stephen Motta, president and CEO, GE Money Canada. "Our entire organization is thrilled at the prospect of working with Hbc and welcoming their financial services employees to GE Money."
"Hbc's alliance with GE Money allows the Company to continue providing excellent credit and financial services to our customers. We have also established the opportunity to add an impressive suite of financial products and services to ensure incremental benefits and value to existing and future Hbc customers," said George Heller, president and CEO of Hbc.
GE Money provides residential mortgages, consumer loans and several direct-to-consumer products, in addition to its existing business of managing private label and MasterCard credit card programs for several of Canada's premier retailers.
The transaction is subject to customary regulatory approvals and closing conditions.
About GE Consumer Finance
With more than $163 billion in assets, GE Consumer Finance, a unit of General Electric Company, 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 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 Hudson's Bay Company
HBC is Canada's oldest corporation and largest department store retailer operating in department store (the Bay), mass merchandise (Zellers) and specialty (Home Outfitters) formats. With over 500 stores and nearly 70,000 associates located in every province in the country, our management team has a vision for growth and is committed to serving Canadians with the products and services they want, how and where they want them.
Contacts Michael Ettlemyer
GE Consumer Finance, 203-585-6791
[email protected]
or
Hudson's Bay Company
Rob Moore, 416-861-4860
[email protected]
Cristy Williams
[email protected]
678.518.2596