DANBURY, CONN., March 15 /CNW/ - GE Capital Solutions, the
business-to-business leasing, financing and asset management unit of General
Electric Co. (NYSE: GE) and The Blackstone Group, through its affiliates, today
agreed to acquire PHH Corporation (NYSE: PHH) in an all-cash transaction for
$31.50 per share or approximately $1.8 billion.
Headquartered in Mount Laurel, NJ, PHH Corporation comprises PHH Arval, a
North American fleet management services provider, and PHH Mortgage, a retail
originator and servicer of residential mortgages in the United States. PHH
Corporation will be purchased by GE, which will retain PHH Arval and sell PHH
Mortgage to Blackstone immediately after closing.
Based in Sparks, MD, and with approximately $5 billion in assets, PHH
Arval provides outsourced vehicle fleet management solutions to corporate
clients, including nearly one-third of the Fortune 500 companies. Through
consultative expertise, flexible customer service, and award-winning Internet
technology, PHH Arval helps clients reduce costs and increase productivity in
managing their fleets. PHH Arval has been serving the fleet industry for more
than sixty years.
"We believe the integrated financing and services we offer can help
customers optimize fleet performance by helping them acquire, manage and sell
company vehicles," said Richard Laxer, president and CEO, GE Capital
Solutions. "Combining with PHH will enable us to provide our customers with a
greater level of service to meet their growing needs and challenges."
"The fleet management industry is changing rapidly, and issues such as
the environment, safety, telematics, global reach and continued cost
effectiveness are increasingly important," said George J. Kilroy, president
and CEO of PHH Arval. "PHH Arval and GE together can bring the focus needed
for these opportunities to expand the impact of fleet management and create
measurable value for our customers."
"Our businesses share a common commitment to customer service, innovation
and using technology to maximize the value of our customers' fleets. The
combination of our businesses will allow us to better serve our customers in
achieving their sales, service and delivery performance goals," added Bob
Mitchell, president and CEO of GE Capital Solutions, Fleet Services.
The acquisition is subject to PHH shareholder and regulatory approvals
and other closing conditions. It is expected to close in the third quarter of
Lehman Brothers advised GE and Blackstone on this transaction. JP Morgan
also served as an advisor to Blackstone. Legal representation was provided by
Weil, Gotshal, & Manges LLP and Simpson Thacher & Bartlett LLP to GE and
About PHH Corporation
Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading
outsource provider of mortgage and vehicle fleet management services. Its
subsidiary, PHH Mortgage, is one of the top ten retail originators of
residential mortgages in the United States and its subsidiary, PHH Arval, is a
leading fleet management services provider in the United States and Canada.
For additional information about the company and its subsidiaries, visit
About The Blackstone Group
The Blackstone Group, a global private investment and advisory firm, was
founded in 1985. Blackstone's Private Equity arm has a long track record
investing in the financial services sector and is currently investing an $18
billion private equity fund. In addition to Private Equity, Blackstone's other
core businesses include, Private Real Estate Investing, Corporate Debt
Investing, Hedge Funds, Mutual Fund Management, Private Placement, Marketable
Alternative Asset Management and Investment Banking Advisory Services. Further
information is available at www.blackstone.com.
About GE Capital Solutions
GE Capital Solutions, Fleet Services (www.gefleet.com.) based in Eden
Prairie, Minnesota, is a global fleet management company. It is part of GE
Capital Solutions and has operations in the United States, Canada, Europe,
Japan, Australia and New Zealand.
GE Capital Solutions (www.ge.com/capitalsolutions) provides leasing,
lending and capital investment products and services to help business
customers grow. It has over $100 billion in assets, serves more than a million
clients around the world and is headquartered in Danbury, Connecticut.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media
and financial services company focused on solving some of the world's toughest
problems. With products and services ranging from power generation, water
processing and security technology to medical imaging, business and consumer
financing, media content and advanced materials, GE serves customers in more
than 100 countries and more than 300,000 people worldwide. For more
information, visit www.ge.com.
For further information:
For further information: GE Capital Solutions Stephen White 203-749-6295
203-837-0540 (cell) firstname.lastname@example.org or The Blackstone Group John Ford
212-583-5559 917-952-3275 (cell) email@example.com or PHH Corporation Nancy
R. Kyle 856-917-4268 610-659-0237 (cell) firstname.lastname@example.org