GE has sold its Mexican equipment lending and leasing business to Linzor Capital Partners in a deal expected to close in the first quarter of next year, the firms said.
The sale includes more than $1.1 billion in assets, said mid-market private equity firm Linzor, while GE added that the deal represented ending net investment (ENI) of $1.1 billion.
Financial terms of the sale – which includes the disposal of unit’s assets and employees as a going concern – were not disclosed.
“We believe this to be a compelling investment opportunity and look forward to working alongside the management team to create value and continue growing the business,” said Tim Purcell, managing partner of Linzor.
The divestment is the latest in GE’s ongoing campaign to dispose of most of its GE Capital units bar a few industry-specific financing verticals that tie-up with its areas of industrial expertise. This latest announcement brings the sales agreed and published to ENI totalling $146 billion over the course of 2015.
“We are pleased to sell our equipment finance business in Mexico to Linzor, a leading private equity firm that we know well and is fully committed to investing and growing in the Latin American financial services industry,” said Keith Sherin, GE Capital chairman and chief executive.
“Linzor values our domain expertise and customer relationships, which is a testament to the hard work of our GE Capital teams in Mexico.”
Linzor is a Latin American-focused private equity group. The GE Capital acquisition will be its third Mexican acquisition. The firm reached a final close of $621.2 million for its third fund in May.