America News: GE and Blackstone to acquire PHH Corp for $1.8 billion

Sharon

Sharon Gill

---

20th March 2007

GE Capital Solutions and The Blackstone Group have agreed to acquire PHH Corp in an all-cash transaction of approximately $1.8 billion.

GE Capital Solutions will buy New Jersey-based PHH Corp and will retain the fleet management services business unit (PHH Arval) and sell the residential mortgage services business unit (PHH Mortgage) to Blackstone immediately after closing.

With approximately $5 billion in assets, PHH Arval provides outsourced vehicle fleet management solutions to corporate clients, including nearly one-third of the Fortune 500 companies. PHH Arval has served the fleet industry for more than sixty years.

GE Capital Solutions, Fleet Services, is a global fleet management company with operations in the US, Canada, Europe, Japan, Australia and New Zealand.

“The fleet management industry is changing rapidly, and issues such as the environment, safety, telematics, global reach and continued cost effectiveness are increasingly important,” said PHH Arval president & CEO George Kilroy. “PHH Arval and GE together can bring the focus needed for these opportunities to expand the impact of fleet management and create measurable value for our customers.”

The acquisition is subject to PHH shareholder and regulatory approvals and other closing conditions, and is expected to close in the third quarter of 2007.