GE Capital To Acquire Franchise Finance Corporation Of America
Danbury, Connecticut-GE Capital, through its CommercialEquipment Financing business, and Franchise Finance Corporation ofAmerica announced today that they've reached an agreement forGE Capital Commercial Equipment Financing to acquire FFCA pursuantto terms contained in an agreement and plan of merger. FFCA hasbeen a leasing provider of franchise financing for more than 20years.
Under the agreement, common shareholders of FFCA will receive$25 in cash for each share held. The transaction values FFCA'sshares at approximately $1.4 billion and, inclusive of assumedliabilities, the total transaction is valued in excess of $2.1billion. The boards of directors of both companies have approvedthe transaction.
"The acquisition complements our existing franchise financebusiness and reflects our ongoing expansion in this attractivegrowth market," said Paul Bossidy, president and CEO of GECapital Commercial Equipment Financing. "With thisacquisition, we will strengthen our position in franchisefinancing. Our customer value proposition will beunsurpassed."
"We are excited about the benefits our new relationshipwith GE Capital will bring to our customers," said MortonFleischer, CEO of FFCA. "By joining GE Capital, we will beable to offer additional services and the expertise of a largefinancial services company, combined with the personalized servicethat our customers are accustomed to every day. We'll also nowhave the ability to expand globally to bring franchise financesolutions to customers around the world." -FranchiseFinance Corporation of America