Acquisition also includes a portion of Corporate Finance business
Wells Fargo & Company (NYSE: WFC) announced today that it has signed an
agreement to purchase GE
Capital’s Commercial
Distribution Finance and Vendor Finance platforms as well as a
portion of its Corporate
Finance business. The acquisition includes total assets of
approximately $32 billion as well as businesses employing approximately
3,000 team members. The loan and lease portfolios are roughly 90 percent
U.S.- and Canada-based. The transaction is expected to close in the
first quarter of 2016. Other terms of the transaction were not disclosed.
“This acquisition is an outstanding opportunity for Wells Fargo to
deepen relationships and strengthen our presence in key commercial
lending markets,” said Tim Sloan, head of Wells Fargo Wholesale
Banking. “GE Capital’s businesses are industry leaders with proven
business models and capabilities backed by exceptionally talented and
experienced teams. These advantages, in addition to portfolios that are
diversified geographically and by industry, will allow Wells Fargo to
continue to grow our business in order to better serve the needs of new
and existing Wholesale Banking customers.”
Commercial Distribution Finance
GE Capital’s Commercial Distribution Finance (CDF) business is a market
leader in providing customized inventory financing to fund the flow of
finished durable goods from manufacturers to dealers. Through industry
expertise and integrated technologies, CDF helps manufacturers and
dealers improve cash flow, reduce risk and grow sales. CDF’s inventory
finance products and deep customer relationships will greatly complement
and expand existing asset-based lending product offerings in Wells
Fargo’s Capital Finance division.
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Total assets of approximately $13 billion(1)
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Approximately 2,000 Original Equipment Manufacturers (OEM)s and 40,000
dealers
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80% of customers in the U.S. and Canada
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Key industry sectors: motorsports, marine, recreational vehicle,
outdoor products, electronics & appliances, and technology
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$49.9 billion in volume in 2014
Vendor Finance
GE Capital’s Vendor Finance business provides vendor and dealer
financing programs for manufacturers and dealers of all sizes, and their
customers, across the U.S. and Canada, from Fortune 500 companies
looking to offer private label financing to independent operations
looking to manage cash flow. The business drives vendor sales growth by
supporting dealers with inventory financing and by providing leases and
loans to commercial end-user customers. As a leading provider of
technology-enabled white label captive program and channel financing
solutions, GE’s Capital’s Vendor Finance business will significantly
expand Wells Fargo’s current capabilities within its Equipment
Finance business.
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Total assets of approximately $9 billion(1)
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40+ Equipment OEMs; 3,300 dealers; and over 160,000 end-user borrowers
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Operates in the U.S. and Canada
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Key industry sectors: office imaging, construction, and technology /
industrials
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$6.7 billion in originations in 2014
Corporate Finance
GE Capital’s Corporate Finance business (also known as Direct Lending
and Leasing) provides senior secured asset-based loans as well as
equipment leases and loans to middle-market customers. Wells Fargo is
purchasing a portion of the business, which will ultimately be
integrated into its existing Capital Finance and Equipment Finance
businesses.
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Total assets of approximately $10 billion(1)
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200 lending customers and 3,400 leasing customers
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Operates in the U.S. and Canada
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Key industry sectors: food & beverage, retail, metals, forestry, oil &
gas, marine, automotive, aerospace, and construction
Advisors
Wells Fargo Securities served as financial advisor and Mayer Brown
served as legal advisor.
About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain asset-based
lending services, senior secured lending services, accounts receivable
and purchase order finance services, and channel finance services of
Wells Fargo & Company and its subsidiaries, and provides traditional
asset-based lending, specialized senior and junior secured financing,
accounts receivable financing, purchase order financing and channel
finance to companies across the United States and internationally.
Dedicated teams within Wells Fargo Capital Finance provide financing
solutions for companies in specific industries such as retail, software
publishing and high-technology, commercial finance, staffing, government
contracting and others. For more information, visit
wellsfargocapitalfinance.com.
About Wells Fargo Equipment Finance
Wells Fargo Equipment Finance provides competitive fixed- and
floating-rate loans and leases covering a full range of commercial
equipment for businesses nationwide, as well as floor planning and
inventory financing and vendor programs in selected industries in the
United States and Canada. Wells Fargo Equipment Finance is one of the
leading bank-affiliated equipment leasing and finance businesses in the
United States by asset portfolio and annual originations, with more than
130,000 customers and 1,100 team members. Wells Fargo Equipment Finance
is the trade name of the equipment finance businesses of Wells Fargo
Bank, N.A. and its subsidiaries. Canadian business is transacted by
Wells Fargo Equipment Finance Company.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $1.7 trillion in assets. Founded in 1852
and headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial finance
through 8,700 locations, 12,800 ATMs, the internet (wellsfargo.com) and
mobile banking, and has offices in 36 countries to support customers who
conduct business in the global economy. With approximately 266,000 team
members, Wells Fargo serves one in three households in the United
States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015
rankings of America’s largest corporations. Wells Fargo’s vision is to
satisfy our customers’ financial needs and help them succeed
financially. Wells Fargo perspectives are also available at Wells
Fargo Blogs and Wells
Fargo Stories.
Cautionary Statement About Forward-Looking Statements
This news release contains forward-looking statements about our future
financial performance and business. Because forward-looking statements
are based on our current expectations and assumptions regarding the
future, they are subject to inherent risks and uncertainties. Do not
unduly rely on forward-looking statements as actual results could differ
materially from expectations. Forward-looking statements speak only as
of the date made, and we do not undertake to update them to reflect
changes or events that occur after that date. For information about
factors that could cause actual results to differ materially from our
expectations, refer to our reports filed with the Securities and
Exchange Commission, including the discussion under “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31, 2014, as
filed with the Securities and Exchange Commission and available on its
website at www.sec.gov.
(1) As of June 30, 2015
