GE to Sell Global Fleet Business to Element Financial

GE has announced that it has reached an agreement to sell its U.S., Mexico, Australia and New Zealand fleet businesses to Element Financial Corporation (TSX:EFN) for US$6.9 billion.

Separately, GE has signed a memorandum of understanding for the potential sale of its European fleet businesses to Arval, a fully owned subsidiary of BNP Paribas. Arval and GE will now consult with their respective works councils.

The transactions’ completion will also be subject to customary regulatory and other local corporate or antitrust approvals.

“We continue to demonstrate speed and execution on our strategy to sell most of the assets of GE Capital,” said Keith Sherin, GE Capital chairman and CEO. “We are on track to execute sales of US$100 billion by the end of 2015 and expect to be substantially done by the end of 2016,” he added.

GE Capital Fleet Services provides commercial car and truck financing and fleet management services, with more than 1.5 million leased, serviced and managed vehicles around the world. Element Financial Corporation is one of North America’s leading fleet management and equipment finance companies. GE Capital sold its Canadian fleet business to Element in 2013.

BNP Paribas, through its fully owned subsidiary, Arval, specializes in full service vehicle leasing in 25 countries and in 14 other countries through a network of partners, including a global alliance with Element.

Excluded from the transactions is GE Capital’s fleet business in Japan. The transaction comes as GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most GE Capital assets.

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