Published on : Jun 04, 2015
General Electric Co. has made yet another step in the direction of escaping regulations set by the Federal Reserve.
The company has started getting in touch with the potential buyers of GE Capital Healthcare Financial Services, said people close to the matter. The company is currently valued somewhere between US$ 10 billion to US$ 11 billion.
GE Capital Healthcare Financial Services lends to health care companies that specialize in hospitals, senior housing, medical devices, and pharmaceuticals among others and some of them are owned by private equity firms. According to its website, the company provided over US$ 10.5 billion in terms of financing for working capital, acquisitions, refinancing, and other purposes last year.
The unit that is on sale is different from the one that GE is retaining. This is a part of its equipment finance business which provides finances to clinics and hospitals for the purchase of medical equipment. Approximately half of this medical equipment are scanners and MRI machines made by GE.
The sale of the health care lending unit comes as GE tries to dispose of majority of the remainder of GE Capital over the course of the next year or so. The conglomerate has already decided to sell a collection of real estate assets for a value of US$ 26.5 billion.
Earlier this week, the Wall Street Journal reported that GE had started the process of bidding for a portion of its US commercial lending operation amounting to US$ 40 billion. A deal regarding the sponsor-finance division may be announced later this week, the Wall Street Journal reported.