March 13, 2006 – Finance Digest
March 13, 2006
Filed under Features
GE Franchise Finance enters powersports industry
GE Commercial Finance, Franchise Finance division recently marked its first foray into the powersports industry through the completion of two real estate financing deals totaling $25 million.
The deals provide financing for Brentwood, Tenn.-based America’s PowerSports and Kent PowerSports LLP of San Antonio.
America’s PowerSports received $18.5 million to consolidate its debt. Formed in November 1998, America’s PowerSports owns 17 motorcycle dealerships in eight states and is one of the largest retail powersports dealer networks in the nation.
Kent PowerSports, owned by five-time Major League Baseball All-Star and 2000 National League MVP Jeff Kent, received $6.3 million in financing to acquire real estate at its two locations. Kent’s motorcycle dealership group in south Texas presently includes Yamaha of San Antonio and 35 North Honda.
With more than $11 billion in served assets, GE Commercial Finance, Franchise Finance serves more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, storage and automotive industries. The firm offers financing for acquisitions, refinancing, construction of new units, and remodels for single- and multi-unit operators/chains.
“These two landmark deals for Franchise Finance are the first steps our business is taking to enter the powersports market,” said Cliff Kraushaar, vice president of brand finance, GE Commercial Finance, Franchise Finance.
Deere 1Q Sales Up 7%
Deere & Co. said net income for its first quarter, ended Jan. 31, was $235.9 million, or $0.99 per share, up from $222.8 million, or $0.89, in the year-earlier period.
Deere sales for the recent first quarter were $4.2 billion, up 7 percent from $3.94 billion last year.
While agricultural sales fell 6 percent to $1.9 billion, consumer and commercial equipment sales were up 20 percent to $628 million, and construction and forestry equipment segment sales were up 18 percent to $1.7 billion.
Jialing Plans Factory in Brazil
Jialing Group, based in China’s Chongqing Municipality, plans to invest 40 million yuan ($4.97 million) to build a factory in Brazil capable of producing up to 100,000 units per year.
Jialing has made no less than five inspection tours of the Brazil market, and another mission will go to Brazil at the end of this month to finalize the project, the Chongqing Daily newspaper reported, citing sources within the company.
Jialing most recently invested in two other foreign facilities.
The company spent 24 million yuan on a facility in Indonesia with an annual production capacity of 500,000 units, and 12 million yuan in Columbia on a facility with an annual capacity of 300,000 units.