GE plans IPO for finance spinoff later this year

FAIRFIELD, Conn. (AP) — General Electric is moving ahead with plans to spin off its North American consumer lending unit, and it aims to complete an initial public offering for the business later this year.

The company, to be called Synchrony Financial, estimates proceeds of up to $100 million from the offering, a figure it devised primarily to calculate a filing fee, according to a document filed Thursday with the Securities and Exchange Commission.

The document did not indicate how many shares will be offered or at what price. General Electric Co., based in Fairfield, Conn., announced last fall that it would spin off the business, which is part of GE Capital and provides store credit cards through retailers like Wal-Mart and the home-improvement chain Lowe's.

GE has been shifting its focus more toward industrial equipment and appliances. CEO Jeff Immelt said last spring that GE wants to reduce the finance arm's assets from about $400 billion in 2013's first quarter to between $300 billion and $350 billion by the end of next year.

The company's products include jet engines, medical diagnostic equipment, oil and gas drilling equipment and washing machines. The planned Synchrony Financial spinoff also works with retailers like Amazon and Ethan Allen. It had 62 million active accounts last year, when it financed $93.9 billion in sales.

According to the SEC filing, the unit recorded $2 billion in earnings last year.

Related Headlines

  • Lowe's 4Q profit meets analysts' estimates

    Lowe's fiscal fourth-quarter net income rose 6 percent, as the home-improvement retailer continued to benefit from the housing market's recovery. The company also announced ... 

  • Orchestrating Alstom follows long French tradition

    France's Socialist leader summoned three CEOs to the presidential palace on Monday to orchestrate the sale of Alstom, an engineering firm and treasure of French industry, in ... 

  • Jeffrey R. Immelt

    GE buy of Alstom energy business not a done deal

    General Electric inched closer to buying the energy-related businesses of France's Alstom by making a $16.9 billion bid, but rival offers and the concerns of French ... 

  • GE 1Q earnings fall, outlook strong

    General Electric's new focus on oil and gas equipment helped the company to post strong first-quarter results. GE posted lower overall first-quarter net income than a year ... 

Find the best rates

Find your future job here