Danbury, Connecticut-GE Capital, through its Commercial Equipment Financing business, and Franchise Finance Corporation of America announced today that they've reached an agreement for GE Capital Commercial Equipment Financing to acquire FFCA pursuant to terms contained in an agreement and plan of merger. FFCA has been a leasing provider of franchise financing for more than 20 years.
Under the agreement, common shareholders of FFCA will receive $25 in cash for each share held. The transaction values FFCA's shares at approximately $1.4 billion and, inclusive of assumed liabilities, the total transaction is valued in excess of $2.1 billion. The boards of directors of both companies have approved the transaction.
"The acquisition complements our existing franchise finance business and reflects our ongoing expansion in this attractive growth market," said Paul Bossidy, president and CEO of GE Capital Commercial Equipment Financing. "With this acquisition, we will strengthen our position in franchise financing. Our customer value proposition will be unsurpassed."
"We are excited about the benefits our new relationship with GE Capital will bring to our customers," said Morton Fleischer, CEO of FFCA. "By joining GE Capital, we will be able to offer additional services and the expertise of a large financial services company, combined with the personalized service that our customers are accustomed to every day. We'll also now have the ability to expand globally to bring franchise finance solutions to customers around the world." -Franchise Finance Corporation of America