In what the company says is a move to simplify its operations, GE announced Friday that it would be selling the bulk of its GE Capital business.
“This is a major step in our strategy to focus GE around its competitive advantages,” GE Chairman and CEO Jeff Immelt said in announcing the sale. “GE today is a premier industrial and technology company with businesses in essential infrastructure industries. These businesses are leaders in technology, the Industrial Internet and advanced manufacturing. They are well-positioned in growth markets and are delivering superior customer outcomes, while achieving higher margins. They will be paired with a smaller GE Capital, whose businesses are aligned with GE’s industrial growth.”
The company said in a statement that would include its commercial lending operations, which is the largest provider of floorplan financing in the marine industry.
Representative’s of GE Capital, Commercial Distribution Finance’s Marine Group were not available for comment, but did provide the following statement to Boating Industry:
“On Friday, April 10, GE announced that it will reduce the size of GE Capital through the sale of most GE Capital assets and focus on continued investment and growth in its industrial and manufacturing businesses. GE Capital, Commercial Distribution Finance is among the businesses targeted for disposition; however, we’re fully committed to serving our customers and we continue to value our long-standing customer relationships. This business is a market-leading franchise with talented professionals and valuable customer relationships. We anticipate being able to sell our businesses to buyers who are fully committed to and invested in the financial services industry and can offer a good environment for growth.”
GE Capital accounts for about half of the company’s profits, but is seen as riskier and weighing down the stock price, according to the Wall Street Journal.