Bloomberg News

GE Said to Scrap Sale of CareCredit Health-Care Financing Unit

August 07, 2013

General Electric Co. (GE:US) is scrapping the sale of its CareCredit health-care financing business after offers failed to meet its expectations, according to a person with knowledge of the matter.

The person asked not to be named as the deliberations are private. Fairfield, Connecticut-based GE was working with Goldman Sachs Group Inc. on the sale of the unit, people familiar with the matter said in June. Those people said the division could fetch $1 billion.

CareCredit, part of the company’s GE Capital division, is the largest issuer of consumer health-care financing in the U.S., according to the New York Attorney General’s office. GE Chief Executive Officer Jeffrey Immelt has been focused on shrinking GE Capital, as the unit faces heightened regulatory scrutiny from the Federal Reserve, which identified it as a potential risk to the financial system.

Susan Bishop, a spokeswoman for GE Capital declined to comment on the decision to cancel the sale, as did Andrew Williams, a spokesman for Goldman Sachs.

To contact the reporters on this story: Leslie Picker in New York at lpicker2@bloomberg.net; Matthew Monks in New York at mmonks1@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net


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