GE sells 14.4% stake in Penske Truck Leasing

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Street Insider  /  July 28, 2016

GE announced toay that it has signed and closed the sale of a 14.4% limited partner interest in Penske Truck Leasing Co., L.P., a full-service truck leasing, rental, and logistics business, to Penske Automotive Group, Inc.

The sale represents ending net investment (ENI) of approximately $0.4 billion and leaves GE with a 15.5% limited partner interest in the business.

In addition to the interests owned by Penske Automotive Group and GE, Penske Truck Leasing is owned by Penske Corporation and Mitsui.

“As we continue to execute on our strategy to sell our businesses that aren’t linked to GE’s industrial businesses, we’re pleased to announce this agreement for the sale of a significant portion of our remaining stake in Penske Truck Leasing to our long-time partner, Penske Automotive Group,” said Keith Sherin, GE Capital chairman and CEO. “Penske Truck Leasing is a leading provider of truck leasing and rental services in North America and is a well-established global provider in the logistics business.”

As previously announced, GE is focusing on its high-value industrial businesses and is selling most of GE Capital’s assets. GE will retain the financing verticals that relate directly to GE’s industrial businesses.

Including this transaction, and since the announcement in April, 2015, GE Capital has signed agreements for approximately US$189 billion and has closed approximately US$168 billion of those deals. GE Capital plans to sell approximately $200 billion of GE Capital businesses worldwide and expects to have largely completed the process by the end of 2016. GE Capital believes it is on track to deliver about $35 billion of dividends to GE under this plan, subject to regulatory approval.