NEW YORK CITY: US industrial conglomerate General Electric said on Thursday (Friday in Manila) it would sell the transportation finance unit of its GE Capital to Canada’s BMO Financial Group.
GE did not disclose the financial terms of the deal to sell the business, which operates in the United States and Canada. The transportation finance unit provides wholesale and commercial end-user financing to equipment makers, dealers and end users for heavy and medium-duty commercial trucks and trailers.
GE has been selling off assets in its finance operations to focus more on its core industrial operations.
“With the sale of our Transportation Finance business to BMO, we have again found a buyer with a customer centric culture who is committed to the industry and growing this business with the help of our tenured and experienced team,” said Keith Sherin, GE Capital chairman and chief executive.
BMO will retain the Transportation Finance management team and employees, GE said.
Sherin said that the company’s strategy of asset sales was “on track” to completion by the end of 2016. Including the BMO transaction, the total for 2015 announced sales is approximately $85 billion, with a year-end goal of 100 billion.