KKR & Co-led Consortium To Buy GE Capital's Unit In Australia & New Zealand

(RTTNews) - Varde Partners, KKR & Co. L.P. (KKR) and Deutsche Bank AG (DB) have signed an agreement on Sunday for the purchase of GE Capital's Australia and New Zealand Consumer Lending Business at an enterprise value of A$8.2 billion.

The Company, with over 3 million customers, is a financial services provider offering a range of services and products including personal loans, credit cards and interest free retail finance. It is a long-standing partner to many of the major retailers in Australia & New Zealand. All of these products and services will remain under the Company's new ownership.

Commenting on the transaction, GE Capital Australia & New Zealand Chief Executive officer Duncan Berry said: "We are delighted to have signed this agreement with a well-respected consortium of businesses. Consumer finance has been a great business for GE and is well positioned for further growth. We remain committed to our growth strategy for GE Capital commercial finance in the region and will continue to build our mid-market lending portfolio and leasing businesses here," Duncan Berry added.

"GE Capital is one the most respected providers of consumer finance in Australasia. They are led by a strong management team with an outstanding track record of partnering with leading retailers. We are delighted to have the opportunity to partner with Värde Partners and Deutsche Bank to support both existing and new customers and product growth in the years to come," said Ed Bostock, Director, KKR Australia.

George Hicks, a founding partner and Co-CEO of Värde Partners, said, "Värde Partners believes this partnership will provide a platform for growth in the dynamic consumer finance market in Australia and New Zealand. It is a natural extension of our deep expertise in specialty consumer finance and a great fit for us."

GE took its counsel from Credit Suisse and Morgan Stanley. Advisers to the acquiring consortium were Bank of America Merrill Lynch, Moelis & Company and Citi.

The transaction is subject to customary regulatory approvals. Further terms of the transaction were not being disclosed.

KKR closed the Friday's regular trading session at $22.87, down $0.16.