The General Electric Company (NYSE: GE) announced on Thursday its plans to acquire most of CitiCapital. The financial terms of the deal are undisclosed.
The purchase of Citigroup Inc.’s North American commercial lending and leasing business will bring GE another $13.4 billion of assets.
GE Capital will add 7 CitiCapital equipment finance business lines: healthcare, private-label equipment, material handling, franchise, construction equipment, bankers leasing, and CitiCapital Canada.
The deal has a successful precedent, when in 2005 GE acquired and integrated CitiCapital’s Transportation Financial Services Group.
GE’s benefits lie in the large customer base and expert work of CitiGroup, while the latter can finally release capital from non-core areas and redistribute that capital to areas with the greatest opportunities for profitable growth.