Wells Fargo swallows up GE Capital vendor finance business

Wells Fargo & Company has completed its purchase of the North American portions of GE Capital’s commercial distribution finance and vendor finance businesses as well as a portion of its corporate finance business, totaling $27.4 billion of assets, including approximately $24 billion of loans.

The remaining international segment of the transaction is expected to close later this year. The total acquisition includes assets of approximately $31 billion as well as businesses employing approximately 2,800 team members.

“The completion of this transaction strengthens our capabilities and deepens our customer relationships in key commercial lending markets across the US and Canada,” said Tim Sloan, Wells Fargo’s president and chief operating officer.

“The businesses acquired from GE Capital are industry leaders with proven business models and capabilities. As a result of this acquisition, we are adding a set of complementary businesses, long-term customer relationships and exceptionally talented and experienced teams that position Wells Fargo as a market leader in these important product areas,” he added.

GE Capital’s commercial distribution finance (CDF) business is a market leader in providing customized inventory financing to fund the flow of finished durable goods from manufacturers to dealers. Like all the other acquisitions, it is to be re-branded with the Wells Fargo name.

GE Capital’s vendor finance business provides vendor and dealer financing programs for manufacturers and dealers of all sizes, and their customers, across the US and Canada, from Fortune 500 companies looking to offer private label financing to independent operations looking to manage cash flow. Wells Fargo said the acquisition will significantly enhance its current capabilities in equipment finance.