Xerox To Receive Approximately $570 Million in Deal with GE Capital
Press release from the issuing company
STAMFORD, Conn.--Dec. 20, 2001-- Xerox and GE Capital today announced a framework agreement for GE Capital's European Equipment Finance to become the primary equipment financing provider for Xerox customers in France and Germany.
For Xerox, the implementation of this agreement will be another step forward in its progress to strengthen the company's financial position by transitioning equipment financing to third-party vendors. For GE Capital, the transactions will provide growth through Xerox's extensive customer base in France and Germany, Xerox's second and third largest European operations respectively.
In addition, GE Capital intends to buy portions of Xerox's current lease receivables in France and Germany for approximately $570 million.
The framework agreement for vendor financing and the sale of lease receivables are subject to regulatory approval, negotiation of definitive agreements and satisfaction of closing conditions, including completion of due diligence as well as notifying and consulting with local works councils.
Today's announcements build on the global relationship between Xerox and GE Capital. Earlier this year, the companies announced framework agreements for GE Capital to become the primary equipment-financing provider for Xerox's customers in the United States and Canada.
Last year, Xerox announced its plan to transition to third-party equipment financing as part of its turnaround strategy. Over time, this is expected to remove as much as $10 billion in equipment financing-related debt from the Xerox balance sheet and reduce the company's future cash requirements.
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