Värde Partners, KKR and Deutsche Bank are to acquire GE Capital’s Australia and New Zealand Consumer Lending Business (the company) at an enterprise value of AUD8.2 billion.
The company is a leading financial services provider offering a range of services and products including personal loans, credit cards and interest free retail finance. It has more than three million customers and is a long-standing partner to many of the major retailers in Australia & New Zealand. All of these products and services will remain under the Company’s new ownership.
GE Capital Australia & New Zealand Chief Executive Officer Duncan Berry, says: “We are delighted to have signed this agreement with a well-respected consortium of businesses. Consumer finance has been a great business for GE and is well positioned for further growth.
“We remain committed to our growth strategy for GE Capital commercial finance in the region and will continue to build our mid-market lending portfolio and leasing businesses here.”
“GE has a strong platform for growth in our industrial businesses in Australia & New Zealand,” says Geoff Culbert, President and CEO, GE Australia & New Zealand. “This transaction allows us to focus on our strategy to be the world’s premier infrastructure technology company with a specialty commercial financial services business. We will continue to work with our customers in key industries including oil and gas, energy, healthcare, aviation and mining.”
Managing Director of GE Capital’s consumer business, Rachel Cobb, says: “This is an exciting opportunity for us to grow our consumer finance business further and we will continue to provide best-in-class service and solutions for our customers and partners.”
Joseph Y Bae, Managing Partner for KKR Asia, says: “KKR is honoured to be an owner of such a world-class franchise. We will leverage KKR's global and regional expertise and platform to create an exciting future for this business.”
"GE Capital is one the most respected providers of consumer finance in Australasia. They are led by a strong management team with an outstanding track record of partnering with leading retailers. We are delighted to have the opportunity to partner with Värde Partners and Deutsche Bank to support both existing and new customers and product growth in the years to come," says Ed Bostock, Director, KKR Australia.
"Värde Partners believes this partnership will provide a platform for growth in the dynamic consumer finance market in Australia and New Zealand. It is a natural extension of our deep expertise in specialty consumer finance and a great fit for us,” says George Hicks, a founding partner and Co-CEO of Värde Partners.
"We are delighted to be part of one of the largest private equity transactions ever in Australia and New Zealand with our world-class partners, KKR and Deutsche Bank. This investment demonstrates Värde’s continued commitment to our Asia-Pacific business, and we look forward to working with the management team to grow the business and strengthen its retail partnerships,” said Ali Haroon, Värde Partners' lead partner in the Asia Pacific Region.
Deutsche Bank Australia and New Zealand Chief Executive James McMurdo says: “Deutsche Bank is delighted to be partnering with KKR and Värde in the acquisition of this high quality, market-leading business in Australia and New Zealand.”
