GE Capital is selling its European sponsor finance business to Sumitomo Mitsui Banking Corp. Europe, a subsidiary of Sumitomo Mitsui Banking, for $2.2 billion, said Susan Bishop, a GE spokeswoman.
The deal is expected to close in the third quarter subject to regulatory approval. Other terms of the deal were not disclosed.
The business finances European midmarket private equity-backed transactions. GE Capital will retain its $1 billion total investment in two European joint ventures with alternative investment firm Ares Management and its funds, Ares Capital Europe I and Ares Capital Europe II.
GE Capital sold the European private equity financing business as part of its sale of most of GE Capital assets. Included in what is left for GE to sell is the rest of GE Capital's European business and its North American commercial leasing business.
