GE Plans $2.4 Billion Purchase of Bombardier Unit
April 19, 2005
Filed under Uncategorized
General Electric Co.'s commercial finance unit, GE Commercial Finance, plans to pay $2.4 billion in cash and assumed debt to purchase Bombardier Capital's inventory finance division (BCIFD).
The financing arm of Montreal-based Bombardier, Inc., BCIFD employees about 280 people at its headquarters in Colchester, Vermont. The company provides floor plan financing for powersports, boats, trailers and manufactured housing to more than 4,500 retailers in the United States and Canada.
GE Commercial Finance, Stamford, Conn., will pay $1.4 billion cash. Another $1 billion of the purchase price is assumed debt. Bombardier said it plans to receive cash proceeds of $825 million at the close of the deal.
The companies say the deal may close prior to the end of the second quarter. Bombardier Capital said it would continue interim financing.
Following Monday's announcement, shares of GE were up 25 cents to $36.01 on the New York Stock Exchange. The company's 52-week high is $37.75. Stock in Bombardier was up 9 cents to C$2.63 on the Toronto Stock Exchange.