Editor’s Note: A previous version of this headline stated that GE Capital is up for sale. It has been revised to clarify that the healthcare services business is being sold.
General Electric Co. is reaching out to potential buyers of GE Capital Healthcare Financial Services, which lends to senior housing among other health care companies.
GE Capital declined to directly comment to SHN on the sale; however, the company did share that the company’s Healthcare Financial Services business provided more than $10.5 billion in financing to customers across more than 240 transactions in 2014, an increase of 20% percent from the prior year. In its 2014 year-end summary, the company did not break out senior housing from other healthcare-related properties.
For the third consecutive year, GE Capital was the No. 1 lead arranger for healthcare financings up to $1 billion in size, according to Thompson Reuters.
“The unit for sale is distinct from one that GE is keeping, which is a division of its equipment finance business that finances the purchase of medical equipment by clinics and hospitals, roughly half of which are GE’s own scanners and MRI machines,” The Wall Street Journal reports.
The company will have sold “$100 billion or more” of GE Capital’s assets by the end of the year, ahead of its earlier projection of $90 billion, Jeff Immelt, GE chairman and CEO said in a statement, according to The Wall Street Journal.
GE is motivated to exit the heavily regulated finance space and get back to its industrial roots.
Written by Cassandra Dowell