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GE to divest HFS US lending business for $9bn

GE has signed an agreement to divest its $8.5bn of healthcare-related loans and Healthcare Financial Services (HFS) US lending business to Capital One for around $9bn.

GE Capital, Healthcare Financial Services provides financing to the US healthcare companies, sponsors, investors and developers across different healthcare sectors, comprising senior housing, hospitals, medical offices, outpatient services, pharmaceuticals and medical devices.

GE Capital chairman and CEO Keith Sherin said: "This transaction is another example of the value generated by GE Capital’s strong businesses and exceptional teams as we continue to demonstrate speed and execute on our strategy to sell most of the assets of GE Capital.

"We are on track to reduce our ending net investment (ENI) by $100bn by the end of 2015 and expect to be substantially done with our exit strategy by the end of 2016."

HFS president and CEO Darren Alcus will also move to Capital One along with his management team and employees.

Subject to customary regulatory and other approvals, the deal is expected to complete in the fourth quarter of this year.