General Electric To Sell Healthcare Finance Unit To Capital One

generalelectric 081215

General Electric Co. (GE) Tuesday said it will sell its U.S. healthcare finance unit to Capital One Financial Corp. (COF) in a deal of about $9 billion, as the company streamlines its business to focus more on industrial manufacturing.

The deal includes about $8.5 billion of health care-related loans. Separately, GE agreed with an another unidentified buyer to sell about $600 million of healthcare finance unit's real estate equity investments.

Keith Sherin, GE Capital chairman and CEO, said, "This announcement is the next step in GE's transformation to a more focused industrial company."

The deal is expected to close in the fourth quarter.

In April, GE had revealed plans to sell most of its financial-services arm GE Capital, and shift focus on high-value industrial businesses.

"We are on track to reduce our ending net investment (ENI) by $100 billion by the end of 2015 and expect to be substantially done with our exit strategy by the end of 2016," Sherin said.

Recently, the company agreed to sell $26.5 billion worth of real estate to a group of buyers led by Blackstone and Wells Fargo, while revealing plans to sell its private-equity-lending unit to Canadian pension fund Canada Pension Plan Investment Board (CPPIB).

GE closed Tuesday's trading at $25.71, down $0.53 or 2.02%, on the NYSE. The stock, however, gained $0.07 or 0.27% in after-hours trade.

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