Western Alliance unit to buy GE Capital’s Franchise Finance U.S. hotel business
Reading time 1 min Staff writer ▼ | March 30, 2016GE has reached an agreement to sell GE Capital’s Franchise Finance U.S. hotel business to Western Alliance Bank, a wholly owned subsidiary of Western Alliance Bancorporation.
Acquisition GE plans to sell approximately $200 billion of GE Capital businesses
Separately, GE also reached an agreement to sell its Canadian Franchise Finance business, including most employees, to a different buyer, representing about $0.3 billion in ENI.
The business provides financing primarily to the Canadian hospitality and restaurant industries.
When completed, the U.S. hotel business and Canadian transactions will contribute approximately $0.2 billion of capital to the overall target of approximately $35 billion of dividends expected to be paid to GE, subject to regulatory approval. Both transactions are expected to close in the second quarter of 2016.
As previously announced, GE is focusing on its high-value industrial businesses and is selling most GE Capital assets. GE will retain the financing verticals that relate directly to GE’s industrial businesses. Since the announcement of this strategy in April 2015, GE Capital has signed agreements for approximately $161 billion and has closed $138 billion of those.
In total, GE plans to sell approximately $200 billion of GE Capital businesses worldwide and expects to be largely complete with the process by the end of 2016. ■
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