GE Consumer Finance today announced that GE Money, the Canadian consumer lending unit of General Electric Company (NYSE:GE) and Hudson's Bay Company (TSX: HBC), Canada's oldest company and largest department store retailer, have entered an acquisition agreement and 10-year alliance in which GE Money will purchase the private label credit card and related financial services assets of Hudson's Bay Company (Hbc).
GE Consumer Finance today announced that GE Money, the Canadian consumer lending unit of General Electric Company (NYSE:GE) and Hudson's Bay Company (TSX: HBC), Canada's oldest company and largest department store retailer, have entered an acquisition agreement and 10-year alliance in which GE Money will purchase the private label credit card and related financial services assets of Hudson's Bay Company (Hbc).
Under the 10-year alliance, GE Money will provide credit marketing and analytic support, credit servicing and customer care for Hbc's 3.1 million retail cardholders. Hbc customers will be able to continue to use their Hbc cards, and will continue to enjoy access to the Hbc rewards program and other cardholder benefits as they do today, as well as a broader range of financial products in the future.
The acquisition will also include the transfer of approximately 650 Hbc employees directly involved in Hbc's Financial Services business to GE Money. These employees will continue to work at their current locations, at operations centers in Montreal, Toronto and Vancouver. GE Money currently has 600 employees at its headquarters in Mississauga and its operations center in Edmonton.
"We are honored to work with a retailer that has the history and tradition in Canada of Hudson's Bay Company," said Mark W. Begor, president and CEO, GE Consumer Finance-Americas. "This new alliance opens up great opportunities to offer enhanced products, benefits and value to Hudson's Bay Company customers while helping drive growth at both Hbc and GE Consumer Finance in Canada."
"This agreement is a significant step forward as our business continues to grow in Canada," said Stephen Motta, president and CEO, GE Money Canada. "Our entire organization is thrilled at the prospect of working with Hbc and welcoming their financial services employees to GE Money."
"Hbc's alliance with GE Money allows the Company to continue providing excellent credit and financial services to our customers. We have also established the opportunity to add an impressive suite of financial products and services to ensure incremental benefits and value to existing and future Hbc customers," said George Heller, president and CEO of Hbc.
GE Money provides residential mortgages, consumer loans and several direct-to-consumer products, in addition to its existing business of managing private label and MasterCard credit card programs for several of Canada's premier retailers.
The transaction is subject to customary regulatory approvals and closing conditions.