LONDON--(BUSINESS WIRE)--Feb. 4, 2003--GE Consumer Finance, the consumer credit services business of the General Electric Company (NYSE: GE), today announced it has agreed to acquire First National's secured and unsecured lending business from Abbey National plc for a consideration of (pound)848 million. This includes net assets of (pound)630 million and a premium of (pound)218 million. A further post-completion payment of up to (pound)42 million may be made to Abbey National, contingent on the performance of the lending book being acquired.
The acquisition of First National represents another significant step in the development of our UK consumer finance business, said Charles Alexander, President, GE Capital Europe. It fits well with our existing businesses and enhances our presence in the UK intermediary-sourced secured and unsecured lending sectors.
The transaction will add (pound)4.8 billion of assets and 2.1 million active customers to GE Consumer Finance's business in the United Kingdom. First National employs approximately 1,400 people and provides finance to customers through intermediaries such as IFAs, brokers, high street retailers, suppliers of home improvements and holiday ownership properties.
The acquisition will significantly broaden the product range of first and second mortgages offered by GE Consumer Finance to its customers in the United Kingdom, while enhancing its position in retail financing. It also takes GE Consumer Finance into a number of attractive new segments.
The businesses acquired include:
-- Secured Lending - Specialist first and second mortgages
-- Unsecured Lending:
- Specialised - Home Improvement Loans and Timeshare Finance
- Retail Point of Sale financing
Stuart Sinclair, UK Group Managing Director of GE Consumer Finance, said: We are very excited by the opportunities this acquisition brings to our operations in terms of both an enhanced product range and new broker relationships. Our experience to date in the UK has been extremely positive, with strong growth experienced by each of our mortgage, retail finance and auto finance businesses.
Our intention is to build on the further opportunities for growth that this acquisition provides. The senior management teams are working closely to ensure continuity for both customers and intermediaries. The transaction excludes the motor finance and litigation finance businesses of First National and is subject to regulatory approval.
GE Consumer Finance was advised by Rothschild.
Cristy Williams
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678.518.2596