GE Completes Transaction for IKON U.S. Leasing Business
IKON Office Solutions, Inc. announced on March 31 the completion of its previously announced transaction with GE Commercial Finance (GE) for its U.S. leasing business. GE Fleet Services is a unit of GE Commercial Finance.As part of the transaction, and subject to post-closing adjustments, IKON will sell certain assets and liabilities of IOS Capital LLC, IKON's captive leasing subsidiary in the U.S., including a portion of its lease portfolio and the transfer of its facilities, systems and processes to GE. In addition, IKON has entered into a program agreement with GE for funding and servicing of IKON's lease originations in the U.S., making GE the company's preferred lease-financing source in the U.S. The company also announced that it has signed a definitive agreement with GE to sell the company's approximate CN$220 million Canadian lease portfolio to GE. As part of this transaction, GE will also become IKON's preferred lease-financing source for its Canadian operations, with IKON to receive an origination fee of three percent on all new lease originations funded by GE. The sale is subject to required regulatory approvals and customary conditions and is expected to close in the third quarter of Fiscal 2004.