GE Capital Sells Australian, NZ Finance Business
Global investment firms Varde Partners, KKR and Deutsche Bank have signed an agreement for the purchase of GE Capital’s Australia and New Zealand consumer lending business at an enterprise value of about $6.3 billion.
The company is a financial services provider offering a range of services and products including personal loans, credit cards and interest free retail finance. It has more than 3 million customers and is a long-standing partner to many of the major retailers in Australia & New Zealand. All of these products and services will remain under the company’s new ownership.
Commenting on the transaction, GE Capital Australia & New Zealand Chief Executive Officer Duncan Berry said: “We are delighted to have signed this agreement with a well-respected consortium of businesses. Consumer finance has been a great business for GE and is well positioned for further growth.”
Duncan Berry added, “We remain committed to our growth strategy for GE Capital commercial finance in the region and will continue to build our mid-market lending portfolio and leasing businesses here.”
“GE has a strong platform for growth in our industrial businesses in Australia & New Zealand,” said Geoff Culbert, president and CEO, GE Australia & New Zealand. “This transaction allows us to focus on our strategy to be the world’s premier infrastructure technology company with a specialty commercial financial services business. We will continue to work with our customers in key industries including oil and gas, energy, healthcare, aviation and mining.”
Advisers to GE are Credit Suisse and Morgan Stanley. Advisers to the acquiring consortium are Bank of America Merrill Lynch, Moelis & Company and Citi.