By Lauren Pollock And Maria Armental
General Electric Co. has reached an agreement to sell its U.S.
health-care lending business and a big package of loans to Capital
One Financial Corp. for about $9 billion as part of its effort to
narrow its operations.
The conglomerate had said in April that it was selling the bulk
of GE Capital, the giant finance business that had long accounted
for about half of its profit.
The deal with Capital One, which is expected to close in the
fourth quarter, includes about $8.5 billion of health-care related
loans.
GE has now signed deals for about $78 billion worth of asset
sales related to its lending business and has said it plans to have
pacts in place to sell $120 billion to $150 billon in assets by the
end of the year.
The health-care business provides financing to companies,
investors and developers across various sectors of the industry,
including senior housing, hospitals, medical offices, outpatient
services, pharmaceuticals and medical devices.
Darren Alcus, CEO of the business, will join Capital One as
president of the health-care finance business.
Capital One said it would acquire the loans at a 6% premium to
par value of all receivables at June 30.
Separately, GE said it has signed an agreement with another
buyer to sell about $600 million of real estate equity
investments.
The decision to exit finance and refocus on its industrial
business is the most momentous shift of Jeff Immelt's multiyear
realignment of the company he inherited almost 14 years ago.
Among other recent deals, GE has agreed to sell $26.5 billion
worth of office buildings and commercial real estate debt to
Blackstone Group LP, Wells Fargo & Co. and other buyers, and
unveiled plans to sell its U.S. private-equity-lending unit to
Canada's largest pension plan in a deal valued at $12 billion.
The company last month reported solid results from its
industrial businesses thanks to strength in the U.S. economy and
demand for jet engines and gas-powered electrical turbines.
Write to Lauren Pollock at lauren.pollock@wsj.com and Maria
Armental at maria.armental@wsj.com
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