Bombardier today announced an agreement to sell the bulk of Bombardier Capital's business aircraft market portfolio to GE Commercial Equipment Financing (CEF), for $339 million US ($475 million Cdn). The portfolio will be integrated into CEF's existing Corporate Aircraft business, an industry leader in the leasing and loan financing of corporate aircraft and helicopters worldwide. Bombardier Capital's business aircraft market portfolio is composed of loans and leases in relation to the financing of business aircraft.
The price represents the book value of the assets being sold.
Bombardier first announced its intention to withdraw from the financing of business aircraft on Sept. 27, 2002.
"On April 3, when we disclosed our action plan to recapitalize Bombardier, we reiterated that a portion of our business aircraft portfolio had been earmarked for sale. We are pleased to announce this agreement with GE," said Paul M. Tellier, President and CEO of Bombardier Inc.
GE Commercial Equipment Financing (CEF), a unit of GE Commercial Finance, helps thousands of customers - from small businesses to Fortune 100 companies - finance the purchase of fixed assets. With $73.4 billion US of served assets worldwide, CEF's portfolio includes manufacturing equipment; facilities; construction and office equipment; corporate aircraft; franchises; trucks and trailers; and a wide variety of other equipment. CEF also provides tax-exempt financing for state and local governments, universities and hospitals, as well as SBA loans for small businesses. GE is a diversified services, technology and manufacturing company with operations worldwide.
Bombardier Inc., a diversified manufacturing and services company, is a world-leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It also provides financial services and asset management in business areas aligned with its core expertise. Headquartered in Montréal, Canada, the Corporation has a workforce of some 75,000 people and manufacturing facilities in 25 countries throughout the Americas, Europe and Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2003 stood at $23.7 billion Cdn. Bombardier shares are traded on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).
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