GE signed an agreement to sell its equipment lending and leasing business in Mexico to Linzor Capital Partners for ending net investment of approximately $1.1 billion. The transaction includes employees of the business.
Linzor was founded in 2006 and currently holds investments in the financial, education, industrial retail and consumer finance sectors across Latin America. In 2011, Linzor acquired GE Capital’s trailer fleet services business in Mexico.
“We are pleased to sell our equipment finance business in Mexico to Linzor, a leading private equity firm that we know well and is fully committed to investing and growing in the Latin American financial services industry,” said Keith Sherin, GE Capital chairman and CEO. “Linzor values our domain expertise and customer relationships, which is a testament to the hard work of our GE Capital teams in Mexico.”
As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most GE Capital assets. When completed, this transaction will contribute approximately $100 million of capital to the overall target of approximately $35 billion of dividends expected to be paid to GE under the plan. With the transaction, the total ENI for 2015 announced sales is about $146 billion.
“We are pleased with the progress we are making to reach and close agreements for our businesses and assets,” concluded Sherin. “This transaction signifies our final slated sale in Mexico, but we remain committed to the market and our customers through our GECAS, EFS and Healthcare Equipment Finance businesses.”
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