General Electric Co. (Fairfield, CT) announced a $2.4 billion deal to acquire one of the main commercial financing units of Bombardier Inc. (Canada). Bombardier's Capital Inventory Finance Division will become part of GE's Stamford-based commercial finance unit, pending regulatory approval. GE said it is paying $1.4 million in cash and will assume $1 billion in debt and other liabilities to acquire the company.
GE said that Bombardier's Capital Inventory Finance Division would strengthen GE's position in the recreational vehicle, manufactured housing, boat, all-terrain vehicle and snowmobile inventory financing markets. GE Commercial Finance and Bombardier's Capital Inventory Finance Division lend money to retailers to purchase products from manufacturers. GE expects to profit from Bombardier's relationships with more than 4,500 dealers and more than 500 manufacturers.
It is unclear whether the deal will mean an increase in employment in Stamford or whether there will be cuts in Vermont and Canada, where 280 workers of Bombardier's Capital Inventory Finance Division are located.
