Canadian Bank Buying GE Capital Transportation Finance
CHICAGO, IL; TORONTO, ON and FAIRFIELD, CT — General Electric Corp. has agreed to sell its GE Capital Transportation Finance business in the U.S. and Canada to BMO Financial Group (BMO), the parent of BMO Bank of Montreal, and to its wholly-owned Chicago-based subsidiary BMO Harris Bank.
Terms of the deal have not been released though BMO said the acquisition has net earning assets of approximately US$9 billion.
The transaction is subject to customary regulatory and other approvals and is expected to close in December of 2015.
The move is the latest by GE to sell off most of the assets in its GE Capital Financing operation.
“We continue to execute on our asset sales and are on track to reduce our ending net investment by US$100 billion by the end of 2015 and expect to be substantially done with our exit strategy by the end of 2016,” said Keith Sherin, GE Capital chairman and CEO.
GE Capital Transportation Finance provides wholesale and commercial end-user financing to OEMs, dealers and end users for heavy and medium duty commercial trucks and trailers.
BMO will retain the transportation finance management team and employees.
In June the Canadian fleet management and equipment finance company Element Financial Corp. reached an agreement to acquire GE Capital’s remaining North American fleet management operations in the U.S. and Mexico, along with as GE Capital’s fleet management operations in Australia and New Zealand.
The transaction followed Element purchasing the Canadian operations of GE Capital’s North American fleet management business in June of 2013.
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