Wells Fargo & Co. completed the purchase of North American GE Capital’s global Commercial Distribution Finance (CDF), North American Vendor Finance, and portions of its Corporate Finance platforms, the company has announced.
Effective March 1, CDF adopted the tradename Wells Fargo Commercial Distribution Finance, and Vendor Finance adopted the tradename Wells Fargo Vendor Financial Services, according to a company press release. San Francisco based-Wells Fargo also purchased a portion of GE Capital’s Corporate Finance business — also known as Direct Lending and Leasing — which is being integrated into its current Equipment Finance and Capital Finance businesses.
The sale totals $24 billion of loans and $27.4 billion of assets, according to the release. The remaining international transaction is expected to close later in the year, with a total acquisition of $31 billion of assets. The completed acquisition will also employ approximately 2,800 people.
“The businesses acquired from GE Capital are industry leaders with proven business models and capabilities,” Tim Sloan, Wells Fargo’s president and chief operating officer, said in the release. “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.”
Throughout December, CDF announced the extension of its joint venture, Polaris Acceptance, which provides floorplan financing to Polaris dealers, as well as the formation of a new partnership between Royal Enfield and CDF parent company, GE Capital. The new agreement will extend the terms of the agreement between Polaris and CDF through 2022. CDF also previously announced a partnership to provide inventory financing for Arctic Cat Inc.’s North American dealer inventory.
CDF provided financing to 5,000 dealers nationally, and more than 40,000 dealers and 2,000 manufacturers and distributors globally in 2015. On the heels of a 12% increase in dealer financing volume through June, CDF previously said it expects additional growth into 2016.