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Investment Banking and
Strategic Business Development
GE Capital Purchase of Heller Financial
Acquisition Summary
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Target Information |
| Target: |
Heller Financial
(HF) Type of Company: Commercial / Real Estate Finance & Leasing |
| City: |
Chicago |
State: IL
|
| Financial Data As Of: |
06/30/01 |
Assets: $19.5
billion |
Book Value: $2.5 billion |
| Target’s Business: |
Heller Financial
is a worldwide commercial finance company providing a broad range of
sophisticated, collateralized financing solutions. With nearly $20
billion in assets, Heller offers equipment financing and leasing, sales
finance programs, collateral and cash flow-based financing, financing
for healthcare companies and commercial real estate. The company also
offers trade finance, factoring, asset-based lending, leasing and vendor
finance products and programs to clients in Europe, Asia and Latin
America. |
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Acquirer Information |
| Acquirer: |
GE Capital (GE)
Type of Company: Diversified Financial Services |
| City: |
Stamford |
State: CT |
| Financial Data As Of: |
06/30/01 |
Assets: $370
billion |
Book Value: $52.2 billion
|
| Acquirer’s Business |
GE Capital, (a
division of General Electric Company) with assets of more than $370
billion, is a global, diversified financial services company grouped
into six key operating segments comprised of 24 businesses. A
wholly-owned subsidiary of General Electric Company, GE Capital provides
a variety of consumer services, such as credit cars and life and auto
insurance; mid-market financing; specialized financing; specialty
insurance; equipment management and specialized services, to businesses
and individuals in 47 countries. |
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Transaction Information |
| Status: |
Pending |
| Announcement
Date: |
07/30/01 |
Accounting:
Purchase |
| Completion Date: |
Pending |
Consideration:
Cash |
| Deal Value: |
$5.3 billion, or
$53.75 per share |
| Price/Earnings |
20.4x |
| Price/Book Value |
2.1x
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| Comments: |
The cash $5.3
billion cash tender offer by GE Capital for all of Heller’s outstanding
common stock, will commence in the first week of August 2001. GE Capital
has also entered into an agreement with The Fuji Bank, Limited, which
owns all of the Class B common shares of Heller, through which Fuji Bank
has agreed to tender all of its share to GE Capital. The Class B shares
represent 52% of the fully diluted ownership of Heller. |
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