STAMFORD, Conn., Sept. 4, 2002 GE Commercial Finance, the commercial lending, financing and leasing business of the General Electric Company, today announced it has agreed to purchase most of the Structured Finance unit of ABB, the global power and automation technology group, for total cash proceeds, including ABB debt and equity, of US$2.3 billion.
The acquisition significantly broadens the products and services offered by GE Commercial Finance's structured and equipment finance operations, especially across Europe.
The transaction, which excludes ABB Export Bank, ABB's Financial Advisory services, its 35 per cent stake in Swedish Export Credit Corporation and its aircraft leasing business, is subject to customary regulatory approvals.
Mike Neal, President and CEO of GE Commercial Finance, said:
"This strategic move expands GE Commercial Finance's global reach in project financing, particularly in the energy, transportation, and infrastructure sectors. It strengthens GE's equipment finance activities throughout Europe and broadens customer relationships in the Nordic region. It also improves our position in Italy, where there's a strong demand for leasing, and complements our existing global relationship with Xerox."
ABB's structured finance businesses will become part of two units of GE Commercial Finance: GE Structured Finance and GE European Equipment Finance.
About GE Commercial Finance
GE Commercial Finance, with more than US$180 billion in assets, offers businesses of all sizes an array of financial services and products worldwide. With a particular expertise in the mid-market segment, GE Commercial Finance provides loans, operating leases, financing programs and other services.
It also offers loans and financing leases for major capital assets, including a full range of aircraft fleet and financing solutions; industrial facilities and equipment, and energy-related facilities; commercial and residential real estate loans and investments; and loans to and investments in public and private entities in diverse industries.
About GE Structured Finance (GESF)
GE Structured Finance, a unit of GE Commercial Finance, is a investor and provider of innovative structured financial products spanning all levels of the capital structure. With more than 30 years of experience, GESF meets the needs of its clients by combining industry and technical expertise with significant financial capabilities.
GESF's 350 professionals serve clients in the commercial and industrial, global energy, entertainment and media, telecommunications, technology and transportation sectors. In the year 2001 alone, the company structured and financed more than 100 transactions worth US$6 billion, and took its managed assets to approximately US$18 billion. www.gestructuredfinance.com
About GE European Equipment Finance (EEF)
GE European Equipment Finance (EEF), a unit of GE Commercial Finance, is a provider of equipment leasing, financing solutions and related services to European businesses of all sizes. EEF does business with manufacturers, equipment vendors and commercial end users who cover a broad and diverse range of assets, including industrial and manufacturing equipment, transportation, construction equipment, information technology, telecommunications and office equipment. EEF currently employs approximately 1,500 professionals across Europe and has assets of over US $8 billion.