GE finalizes Transportation Finance sale

GE recently finalized the sale of its GE Capital, Transportation Finance company located in Canada and the United States to BMO Financial Group.

The company gained $8.7 billion from ending net investments. This is equal to $8.9 billion from net earning assets.

“We’re pleased to sell our Transportation Finance business to a strong financial services firm like BMO, which is committed to continuing to grow the business,” Keith Sherin, GE Capital chairman and CEO, said. “It is another important step as we continue to execute on our plan to sell most of the assets of GE Capital.”

This sale is just one part of GE’s strategy to prioritize the company’s high-value industrial businesses. The company has also sold or is selling the majority of its GE Capital assets, because the company as well as its board of directors has decided that today’s market conditions are prime for disposing of GE Capital assets.

This sale unleashes an estimated $0.7 billion in capital. The company plans to distribute approximately $35 billion in dividends to GE as part of the transaction. This detail is still subject to the company’s regulatory approval.

“We thank the Transportation Finance team for their contributions to GE Capital and to our customers and wish them a successful future as they join BMO,” Sherin said.