(Bloomberg) — Värde Partners, KKR & Co. and Deutsche Bank AG agreed to buy General Electric Co.’s Australia and New Zealand financial services unit in what they described as one of the region’s largest private equity deals.
GE Capital Corp.’s Australia and New Zealand Consumer Lending Business will be purchased at an enterprise value of A$8.2 billion ($6.3 billion), the companies said Sunday. Advisers to GE are Credit Suisse Group AG and Morgan Stanley. Advisers to the acquiring consortium are Bank of America Merrill Lynch, Moelis & Co. and Citigroup Inc.
More from Bloomberg.com: WPP Said to Bid for Tesco’s Dunnhumby Customer Data Tracker
“This partnership will provide a platform for growth in the dynamic consumer finance market,” George Hicks, co-chief executive officer of Minneapolis-based Värde Partners, said in a statement. “It is a natural extension of our deep expertise in specialty consumer finance and a great fit for us.”
The unit, which provides GE-branded credit cards and personal loans, has about A$7 billion of gross assets, people with knowledge of the matter said in December. It has about 100 branches and operates store cards for Perth-based Wesfarmers Ltd.’s Coles supermarkets and Myer Holdings Ltd.
More from Bloomberg.com: East Ukraine Front Is Calm as Poroshenko Gives Autonomy Details
“GE has a strong platform for growth in our industrial businesses in Australia and New Zealand,” said Geoff Culbert, president and CEO of GE Australia & New Zealand. “This transaction allows us to focus on our strategy to be the world’s premier infrastructure technology company with a specialty commercial financial services business. We will continue to work with our customers in key industries including oil and gas, energy, healthcare, aviation and mining.”
GE has been shrinking GE Capital after the financial services arm threatened to drag down the group during the 2008-2009 credit crisis.
In July, Fairfield, Connecticut-based GE sold a stake in its North American consumer-lending business Synchrony Financial in an initial public offering that valued the unit at $19 billion. It also spun off a majority holding in its Swiss consumer finance company Cembra Money Bank AG in October. Spain’s Banco Santander SA agreed in June to buy GE’s consumer finance unit in Sweden, Denmark and Norway for 700 million euros (then-$872 million).
More from Bloomberg.com: Nuclear Deal Now Up to Iran as Deadline Nears, Kerry Says
“We are delighted to be part of one of the largest private equity transactions ever in Australia and New Zealand,” Ali Haroon, Värde Partners’ lead partner in the Asia Pacific Region, said in the statement. “This investment demonstrates Värde’s continued commitment to our Asia-Pacific business.”
To contact the reporter on this story: Michael Heath in Sydney at email@example.com
To contact the editors responsible for this story: Stanley James at firstname.lastname@example.org Jim McDonald, Glenys Sim
More from Bloomberg.com
- Clegg Rules Out U.K. Liberal Democrat Deals With SNP or UKIP
- U.S. Pressing Assad to Negotiate End to War, Kerry Says
- Egypt Stocks Rise on at Least $12 Billion in Aid; Dubai Drops
- Investment & Company Information
- GE Capital
- Deutsche Bank AG
- Credit Suisse Group AG
- Bank of America Merrill Lynch
- Morgan Stanley
Source Article from http://finance.yahoo.com/news/v-rde-kkr-deutsche-buy-084744013.html