TIAA Bank buys $1.5bn healthcare equipment finance portfolio from GE
TIAA Bank has acquired a portfolio of healthcare equipment leases and loans worth $1.5 billion from the healthcare equipment finance (HEF) business of GE Capital.
The acquired healthcare portfolio features loans and leases to nearly 1,100 hospitals and also 3,600 physician practices and diagnostic and imaging centers in the US. Among the assets financed by the business are imaging, monitoring, ultrasound, respiratory, surgical, and lab equipment.
The acquisition of the healthcare equipment financing portfolio expands the commercial banking business and improves the ability to offer a full variety of financial solutions to institutional clients and cater to an even greater number of healthcare providers, said TIAA Bank.
Apart from that, the parties have signed a five-year vendor financing agreement for GE Healthcare’s US customers.
The leadership, infrastructure and salesforce of GE Healthcare Equipment Finance will be absorbed into GE Healthcare next year and the team will continue to originate and service transactions as per a co-branding arrangement with TIAA Bank.
Based in Jacksonville, Florida, TIAA Bank offers a wide variety of commercial banking solutions such as business banking, term loans, lines of credit, real estate and equipment financing to its clients. The addition of the healthcare equipment finance is expected to allow TIAA to come up with an even more comprehensive variety of services to the strategic growth market.
Blake Wilson – CEO of TIAA’s Retail Financial Services and chairman and CEO of TIAA Bank, said: “This agreement with GE Capital supports our long-term asset growth plan and provides scale and portfolio diversification while significantly expanding our on-going relationship with GE, a top-tier healthcare equipment manufacturer.
“The healthcare industry is dynamic and ever-changing, and the need for new healthcare equipment continues to grow at a rapid pace. This deal will allow TIAA Bank and GE’s healthcare finance business to continue to help clients with their financing needs for years to come.”
For GE Capital, the sale of the healthcare equipment financing portfolio was taken up to become smaller and more focused.
Trevor Schauenberg – president and CEO of GE Capital Industrial Finance, said: “This is an excellent outcome for GE Capital, GE Healthcare and its customers.
“TIAA Bank is a well-known, highly respected institution and we look forward to working with its outstanding team, ensuring a strong foundation for the future and seamless continuity of service for our U.S. customers. With this portfolio sale and financing alliance, we are expanding our funding capability and improving our competitive offerings for our customers.”