GE Capital said the purchased loans portfolios provide consumer financing programs and related services to nearly three dozen retail chains with more than 18,000 small- to mid-sized retailers and dealers across the U.S. The retailers operate in four main segments that are core to GE Capital's Sales Finance business: home furnishings; flooring; consumer electronics; and heating, ventilation and air conditioning.
Bill Johnson, CEO of Citi's Retail Partner Cards said, "Selling these assets enables us to streamline the strategic operating model, including our bank legal vehicles and operating platforms, for the Retail Partner Cards business."
Both GE Capital and Citigroup have been hit hard during the financial crisis. For GE Capital, this deal marks the first consumer purchase in two years, according to Bloomberg. For Citi, the sale is a continuation of its non-core asset divestment, part of its efforts to shore up its balance sheet.