GE Capital, the financial services arm of the General Electric Company, announced it has entered into an agreement to acquire 100% of the equity of AcceptFinans A/S, the Danish consumer lending subsidiary of Gjensidige NOR Sparebank of Norway, for DKr567.6 million ($66.5m(1)). AcceptFinans A/S will become part of GE Capital’s Global Consumer Finance unit. Completion is expected to occur within the next two weeks.
Operating in Denmark, AcceptFinans A/S has a total loan portfolio of 1.3 billion DKr, and engages in sales finance and personal loans. It is one of the leading consumer finance companies in the growing and increasingly competitive Danish market. GE Capital’s acquisition of AcceptFinans A/S broadens the product portfolio of GCF’s Danish operations and will substantially expand its retail offering.
Commenting, Dan O’Connor, President and CEO of GE Capital GCF, Europe said
“This acquisition presents an excellent strategic fit for our Danish GCF operations, and means we can strengthen our offerings in the Danish market through better and more effective financing solutions than have been possible to date. We will be able to offer our customers a broader product range across the Danish region, and the business will achieve both significant economies of scale and cost synergies.”
Prior to this acquisition, GCF employed approximately 400 people in the Nordic region, with the largest portion being located in Sweden.
(1) Conversion based on closing mid-point on 20th July 2001, as reported in Financial Times 23rd July 2001 ($1 = DKr8.5325).
GE Capital Consumer Finance
GE Capital Global Consumer Finance (GCF) delivers credit and insurance products and services to retailers, auto dealers and consumers in 33 countries worldwide. GCF provides private label credit cards and proprietary credit services to some of the worlds leading retailers, auto dealers and manufacturers. GCF’s retail partners, which include Laura Ashley, Wal*Mart, Home Depot, and Meyer Grace, span such diverse industries as apparel, home furnishings, appliances and electronics. GCF also offers a diversified portfolio of direct-to-consumer financial programs, including personal loans, mortgages, auto loans and leases, insurance products and MasterCard and Visa credit cards. It is one of the largest sales finance and personal loan providers in Scandinavia , with clients such as ELON and Europamobler in Sweden, Expert and Co-op in Norway and Merlin in Denmark.Details