Sumitomo Mitsui to buy GE’s European sponsor finance business

By Wendy Van Sickle

Columbus, Ohio, June 30 – Sumitomo Mitsui Banking Corp. Europe Ltd. plans to buy General Electric Co.’s European Sponsor Finance business for around $2.2 billion, according to a press release issued by GE on Tuesday.

The business being sold provides sponsor finance for European mid-market, private-equity backed transactions. Its sale is part of GE’s “strategy to sell most of the assets of GE Capital,” according to the release.

“We had many indications of interest in this business and are pleased to partner with SMBCE [Sumitomo Mitsui Banking Corp. Europe] on the sale of this franchise,” Keith Sherin, GE Capital chairman and chief executive officer, said in the statement.

The sale is expected to close in the third quarter of 2015.

GE Capital will retain its $1 billion investment in the European senior secured loan and European loan programs, both joint ventures between affiliates of GE Capital and of Ares Capital.

Since April 10, GE has signed agreements to sell about $23 billion of GE Capital assets.

GE is a multinational conglomerate corporation based in Fairfield, Conn. Sumitomo Mitsui Banking Corp. Europe Ltd. is a subsidiary of Sumitomo Mitsui Banking Corp., a Tokyo-based financial services company.

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