GE divests $1.5B in healthcare equipment loan portfolio to TIAA Bank

General Electric (NYSE:GE) has divested a portfolio of its healthcare equipment leases and loans from its GE Capital Healthcare Equipment Finance biz to TIAA Bank in a $1.5 billion deal as GE looks to trim down and narrow its focus, the companies said today. Jacksonville, Fla.-based TIAA Bank said today that the acquisition will expand its commercial banking business and its ability to provide a full range of financial solutions to an increased number of healthcare providers. “This agreement with GE Capital supports our long-term asset growth plan and provides scale and portfolio diversification while significantly expanding our on-going relationship with GE, a top-tier healthcare equipment manufacturer. The healthcare industry is dynamic and ever-changing, and the need for new healthcare equipment continues to grow at a rapid pace. This deal will allow TIAA Bank and GE’s healthcare finance business to continue to help clients with their financing needs for years to come,” TIAA Bank chair & CEO Blake Wilson said in prepared remarks. The divestiture also includes a five-year vendor financing agreement for U.S. customers of GE Healthcare, the groups said. GE Healthcare is slated to integrate the infrastructure, salesforce and leadership from its Equipment Finance division next year, and will continue to operate under a co-branding arrangement with TIAA Bank. The acquisition includes loans and leases to approximately 1,100 hospitals and 3,600 physician practic...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Mergers & Acquisitions Wall Street Beat General Electric tiaabank Source Type: news