GE Commercial Finance to Buy Bombardier Capital's Inventory Finance Division
STAMFORD, CT — GE Commercial Finance, the business-to-business financial services unit of General Electric Co., said on April 18 it will purchase Bombardier Capital's inventory finance division (BCIFD) for $1.4 billion in cash, according to the Associated Press.
GE will also assume $1 billion in debt and other liabilities in the deal.
The target company, which is part of the financing division of Montreal-based Bombardier Inc., provides floor plan financing for a range of equipment in the U.S. and Canada. BCIFD is headquartered in Colchester, Vt., and has about 280 employees.
The Bombardier Capital division is comprised of four main business units that provide financing for a variety of products, including snowmobiles, all terrain vehicles, boats, motors, and boat trailers, as well as recreational vehicles.
Separately, Bombardier said it will receive cash proceeds of $825 million from the sale, which marks the continuation of Bombardier Capital's portfolio wind-down, initiated in 2001, according to the Associated Press.