GE Capital Franchise Finance Anticipates Sale
GE said it would sell most of its GE Capital assets by 2018, in a move to refocus on its industrial businesses. GE Chairman and CEO Jeff Immelt said market conditions are favorable to pursue the sale of GE Capital assets not specifically tied to it industrial units. What does that mean for GE Capital, Franchise Finance, one of the largest lenders in the restaurant finance arena?
We reached out to GE Capital, Franchise Finance this morning for comment on the announcement. Shannon Tolbert, chief marketing officer, GE Capital, Franchise Finance issued this statement to the Monitor.
“On Friday, April 10, GE announced that it will reduce the size of GE Capital through the sale of most GE Capital assets and focus on continued investment and growth in its industrial and manufacturing businesses. GE Capital, Franchise Finance is among the businesses targeted for disposition; however, we’re fully committed to serving our customers and we continue to value our long-standing customer relationships. This business is a market-leading franchise with talented professionals and valuable customer relationships. We anticipate being able to sell our business to buyers who are fully committed to and invested in the financial services industry and can offer a good environment for growth.”
GE entered the franchise finance business by first acquiring MetLife franchise finance group in the late ‘90s. A bigger step came in 2001 when the lender acquired Franchise Finance Corporation of America, a REIT that specifically focused on restaurant franchise sale-leasebacks. GE Capital has deployed billions of dollars into the franchise sector since then.