GE to Sell Commercial Lending and Leasing Business in Japan to Sumitomo Mitsui Finance and Leasing (SMFL)

  • Transaction Aligns with GE’s Strategy to Create Simpler, More Valuable Industrial Company
  • GE Capital’s Announced Deals to Date Total Approximately US $154 Billion (ENI)

FAIRFIELD, Conn.--()--GE (NYSE:GE) has signed an agreement today to sell its commercial lending and leasing business in Japan, including Capital Finance, Fleet Service and Vendor Finance, to Sumitomo Mitsui Finance and Leasing (SMFL), a member of Sumitomo Mitsui Financial Group. The transaction includes employees of the business and represents aggregate GE ending net investment (ENI) of approximately US $4.6 billion. The sale price is approximately US $4.8 billion.

“We continue to make quick progress on the sale of our international assets and are pleased to sell this business to a company that is committed to growth for our customers and employees,” said Keith Sherin, GE Capital chairman and CEO. “This is our second transaction with the broader Sumitomo Mitsui Financial Group and we were happy to work with them again,” he added.

Sumitomo Mitsui Finance and Leasing is one of Japan's largest leasing companies. It is developing business overseas, including in China, Southeast Asia and the United States. As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most of GE Capital’s assets. GE will retain the financing verticals that relate to GE’s industrial businesses. When completed, today’s transaction will contribute approximately US $0.6 billion of capital to the overall target of approximately US$35 billion of dividends expected to be paid to GE under this plan (subject to regulatory approval).

The transaction is subject to customary regulatory approval. It is expected to close in April 2016. Morgan Stanley acting together with Mitsubishi UFJ Morgan Stanley Securities provided financial advice and Nagashima Ohno & Tsunematsu provided legal advice to GE.

About GE

GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com

GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, including @GE_Reports, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.

About Sumitomo Mitsui Finance and Leasing

Sumitomo Mitsui Finance and Leasing is one of the leading companies in Japanese leasing industry. SMFL is well positioned to offer optimal products and services promptly to each of its customers in a wide spectrum of industries. SMFL also offers its customers the best financial and business solutions as it makes social contributions to the environment and regional areas. With its extensive overseas network, SMFL actively serves the needs of companies entering overseas markets. SMFL responds to a wide range of customer financial management needs and offers high-value-added products and services that address customers’ business issues. For more information, please visit www.smfl.co.jp/.

Contacts

Investors:
GE
Matt Cribbins, +1 203-373-2424
matthewg.cribbins@ge.com
or
Media:
GE Capital
Katja Antila, +44 20 7853 1677
katja.antila@ge.com
or
GE
Seth Martin, +1 203-572-3567
seth.martin@ge.com

Contacts

Investors:
GE
Matt Cribbins, +1 203-373-2424
matthewg.cribbins@ge.com
or
Media:
GE Capital
Katja Antila, +44 20 7853 1677
katja.antila@ge.com
or
GE
Seth Martin, +1 203-572-3567
seth.martin@ge.com