GE Capital Sells $1.5bn Healthcare Equipment Finance Portfolio to TIAA Bank
2018-11-27 10:06 Tuesday
General Electric's financial services arm, GE Capital, has offloaded its $1.5bn portfolio of healthcare equipment leases and loans to TIAA Bank.
GE Capital's sale of its equipment finance division was driven by a desire to streamline itsbusiness operations. Following the acquisition, GE Healthcare Equipment Finance's leadership, infrastructure and salesforce will be integrated into GE Healthcare in 2019.
The acquisition will also significantly expand TIAA Bank's commercial banking business, diversify its portfolio, and enable it serve a greater number of healthcare providers.
TIAA Bank offers a wide range of commercial banking solutions to its clients, including business banking, term loans, lines of credit, real estate and equipment financing. As part of the acquisition, GE Capital and TIAA Bank concluded a five-year vendor financing agreement for GE Healthcare's U.S. customers.
The healthcare portfolio includes loans and leases to approximately 1,100 hospitals as well as 3,600 physician practices and diagnostic and imaging centers across the United States. Among the financed assets include imaging, monitoring, respiratory, surgical, ultrasound and lab equipment.
President and CEO of America's Direct Finance at GE Capital, Trevor Schauenberg, noted: "TIAA Bank is a well-known, highly respected institution and we look forward to working with its outstanding team, ensuring a strong foundation for the future and seamless continuity of service for our U.S. customers. With this portfolio sale and financing alliance, we are expanding our funding capability and improving our competitive offerings for our customers."
"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," said Blake Wilson, CEO of TIAA Retail Financial Services and Chairman and CEO of TIAA Bank.