GE has inked a deal to sell its Healthcare Financial Services (HFS) U.S. lending business and $8.5 billion in healthcare-related loans to Capital One for approximately $9 billion, but it will retain a unit that provides healthcare equipment financing to GE Healthcare customers.
Similar financing operations related to GE's industrial businesses will also not be included in the sale. For GE, the Capital One sale reflects its strategy to "be a more focused industrial company," according to the vendor.
HFS offers financing to companies, sponsors, investors, and developers across various healthcare sectors, including senior housing, hospitals, medical offices, outpatient services, pharmaceuticals, and medical devices, GE said. HFS President and CEO Darren Alcus will join Capital One, as will the rest of the HFS management team and its employees. The Capital One purchase is expected to be completed in the fourth quarter, subject to customary regulatory and other approvals.
In a related move, GE has also agreed to sell approximately $600 million in real estate equity investments made by HFS to another undisclosed buyer.
