(Bloomberg) — General Electric Co. (NYSE:GE) agreed to sell its health care finance unit to Capital One Financial Corp. (NYSE:COF) for about $9 billion as the company accelerates the disposal of its lending operations.
Capital One will acquire the operation and about $8.5 billion of health care-related loans, GE said Tuesday in a statement. Separately, GE reached a deal with an unidentified buyer to sell approximately $600 million of real estate equity investments.
The Healthcare Financial Services unit, a provider of mortgages and loans to nursing homes and other health care companies, is among the GE operations being sold as Chief Executive Officer Jeffrey Immelt shrinks the GE Capital banking unit that imperiled the parent company during the financial crisis. GE is divesting about $200 billion of GE Capital assets to focus on manufacturing.
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“This announcement is the next step in GE’s transformation to a more focused industrial company,” Keith Sherin, CEO of GE Capital, said in the statement.