First paragraph, first sentence of release should read: Wells Fargo &
Company (NYSE:WFC) announced today that it has completed the purchase of
the North American portions of GE Capital’s Commercial Distribution
Finance and Vendor Finance businesses as well as a portion of its
Corporate Finance business, totaling $27.4 billion of assets, including
approximately $24 billion of loans. (instead of … including $2.9 billion
of loans.)
The corrected release reads:
WELLS FARGO COMPLETES ACQUISITION OF GE CAPITAL’S NORTH AMERICAN
COMMERCIAL DISTRIBUTION FINANCE AND VENDOR FINANCE BUSINESSES
Wells Fargo & Company (NYSE:WFC) announced today that it has completed
the purchase of the North American portions of GE Capital’s Commercial
Distribution Finance and Vendor Finance businesses as well as a portion
of its Corporate Finance business, totaling $27.4 billion of assets,
including approximately $24 billion of loans. The remaining
international segment of the transaction is expected to close later this
year. The total acquisition includes assets of approximately $31 billion
as well as businesses employing approximately 2,800 team members.
“The completion of this transaction strengthens our capabilities and
deepens our customer relationships in key commercial lending markets
across the U.S. and Canada,” said Tim Sloan, Wells Fargo’s president,
chief operating officer and head of wholesale banking. “The businesses
acquired from GE Capital are industry leaders with proven business
models and capabilities. As a result of this acquisition, we are adding
a set of complementary businesses, long-term customer relationships and
exceptionally talented and experienced teams that position Wells Fargo
as a market leader in these important product areas.”
As previously announced, the businesses acquired from GE Capital include:
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 across the U.S. and Canada improve cash flow, reduce risk and
grow sales. CDF’s inventory finance products and deep customer
relationships greatly complement and expand the existing asset-based
lending product offerings in Wells
Fargo’s Capital Finance division. Effective March 1, Commercial
Distribution Finance will adopt the tradename Wells Fargo Commercial
Distribution Finance.
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 Capital’s Vendor Finance business will significantly
expand Wells Fargo’s current capabilities within its Equipment
Finance business. Effective March 1, Vendor Finance will adopt the
tradename Wells Fargo Vendor Financial Services.
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
purchased a portion of the business, which is being integrated into its
existing Capital Finance and Equipment Finance businesses.
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. Wells Fargo Commercial Distribution Finance is
the trade name for certain inventory financing (floor planning) services
of Wells Fargo & Company and its subsidiaries. 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 a leading
bank affiliated equipment leasing and finance business 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 $1.8 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, 13,000 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 265,000
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, 2015 as
filed with the Securities and Exchange Commission and available on its
website at www.sec.gov.
