STAMFORD, Conn. - GE Commercial Finance, the business-to-business financial services unit of the General Electric Company, has agreed to acquire Bombardier Capital's Inventory Finance Division, GE said in a release yesterday.
Upon closing, GE Commercial Finance has agreed to pay Bombardier Inc. approximately US$1.4 billion in cash and assume US$1.0 billion in debt and other liabilities related to the business.
BCIFD - which is part of the financing division of Bombardier Inc., and provides floor plan financing for a diverse range of equipment in the US and Canada - is headquartered in Colchester, Vermont and has approximately 280 employees.
"GE and Bombardier enjoy a long history together and continue to be strategic partners in multiple industries," said Mike Neal, president and CEO of GE Commercial Finance. "The acquisition of Bombardier's Inventory Finance business further enhances our ability to provide more business solutions to more customers across the supply chain finance spectrum."
BCIFD has relationships with more than 4,500 dealers and more than 500 manufacturers. It is comprised of four main business units that provide financing for a variety of products: Marine (boats, motors, and boat trailers), Recreational Vehicles, Powersports (snowmobiles, all terrain vehicles) and Manufactured Housing.
The closing, which is expected to occur as early as the second quarter of 2005, is subject to customary closing conditions. GE Commercial Finance was represented by Weil, Gotshal & Manges LLP and advised by Citigroup Global Markets on this transaction.
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