Citi today announced the closing of the sale of $1.6 billion in managed assets, part of its U.S. retail sales finance portfolios, to GE Capital.
The assets were part of Citi Holdings. Terms of the deal, which has received regulatory approval, were not disclosed.
This transaction will reduce assets by $1.6 billion in Citi Holdings, Citi's portfolio of non-core operating businesses and assets, and builds on the progress made to date to reduce assets in an economically rational manner. Citi continues to pursue opportunities within Citi Holdings that create the most value for stakeholders.
"Selling these assets enables us to streamline the strategic operating model, including our bank legal vehicles and operating platforms, for the Retail Partner Cards business," said Bill Johnson, CEO, Retail Partner Cards, Citi. "Going forward, we are better positioned for future growth as we continue to partner with premier brand retailers across a broad spectrum of industries and retailing specialties."
Retail Partner Cards, within Citi Holdings, provides consumer and commercial credit card products and services, including private label credit cards, for national and regional retailers across the U.S. The business services more than 40 million customers and consists of managed assets of approximately $50 billion. Retail partners include The Home Depot, Shell, Macy's, Sears, and ExxonMobil, among others.
Citi will provide portfolio servicing on an interim basis until the first quarter of 2011.