General Electric will sell most of its GE Capital assets by 2018, a move that will reshape the company and further the role of its industrial businesses as the principal source of GE’s earnings, CEO Jeff Immelt announced Friday morning.
The company expects to get $26.5 billion from buyers that include the Blackstone Group and Wells Fargo while absorbing a $16 billion after-tax charge related to the transaction.
GE will focus on its industrial business moving forward, keeping its financial units used to support its industrial business, such as jet engines and electrical turbines.
GE Capital confirmed in an email that Commercial Distribution Finance, which leads the company’s recreation lending division, was among the businesses targeted for disposition.
“We’re fully committed to serving our customers and we continue to value our long-standing customer relationships,” the message read. “This business is a market-leading franchise with talented professionals and valuable customer relationships. We anticipate being able to sell our businesses to buyers who are fully committed to and invested in the financial services industry and can offer a good environment for growth.”
Last year, the company began a move away from the financial business in spin-offs and IPOs of Synchrony Financial.
“The successful IPO of Synchrony Financial and other recent business exits have demonstrated that our financial services assets can be more valuable to others,” GE Capital CEO Keith Sherin told CNN Money.