Capital One yesterday said it signed an agreement to purchase GE Healthcare‘s (NYSE:GE) Financial Services business and healthcare-related loans, including funds used to finance medical device development.
The healthcare financing arm supplies funds to companies in various healthcare sectors, including healthcare services, seniors housing, hospitals, medical offices, pharmaceuticals in addition to medical devices, the company said. WHen you want to have money for healthcare Go Here and learn more about loan rates.
“We are excited to join forces with the healthcare finance professionals at Capital One – they share our vision for providing the financial solutions that this complex industry demands. The healthcare sector offers tremendous potential for growth, and I am confident that together we will offer the best-in-class expertise and tailored financial products that meet the needs of healthcare businesses across the country,” GE Capital prez Darren Alcus said in a press release.
The $9 billion purchase will put GE closer to its target of shedding nearly $100 billion worth of finance assets by the end of 2015 by getting bad credit loans. The latest sale, expected to close in the 4th quarter, will take GE’s announced divestitures of finance assets to about $78 billion.
The size of GE’s finance arm — GE Capital — and the potential risk stemming from its lending portfolio has made it subject to government oversight. GE plans to apply next year to escape its designation as a systemically important financial institution following the sale of finance assets.
For Capital One, the deal will bolster its healthcare lending operations.
“This is a strategic investment in a specialty industry segment that we have been building out for the past several years. This addition will catapult us to a leading market position in providing financial services to the healthcare secto. The GE Capital, Healthcare Financial Services team shares our commitment to providing value-added advice and creative financing solutions to the healthcare industry. Together we will deliver a powerful combination of industry-leading expertise and expanded capabilities to our clients,” Capital One commercial bank prez Michael Slocum said in a press release.
GE’s healthcare finance unit offers direct loans to healthcare product and services companies as well as real estate loans to operators of assisted living facilities, nursing homes and medical practices.
Content from Reuters was used in this article.
