GE CAPITAL TO ACQUIRE GNA CORP. AND ITS SUBSIDIARIES FROM WEYERHAEUSER CO.
TACOMA, Wash., Jan. 6 /PRNewswire/ -- GE Capital and Weyerhaeuser Co. (NYSE: WY) today announced the signing of a definitive agreement for the sale of Weyerhaeuser's wholly owned subsidiary, GNA Corp., to GE Capital for a purchase price of approximately $525 million in cash, subject to certain adjustments. As a part of the transaction, Weyerhaeuser will assume $225 million of outstanding GNA debt. Under the agreement, GE Capital will acquire 100 percent of GNA's stock. The transaction, which is subject to regulatory approval, is expected to close in 90 days. GNA writes and markets tax-deferred annuities and sells proprietary and third-party mutual funds through financial institutions. In 1992, the combined volume for these products was $3.2 billion. John W. Creighton Jr., president and chief executive officer of Weyerhaeuser, said, "GE Capital is getting a well-run, consistently profitable business, operating in a carefully thought out and successful market niche. GE Capital is an excellent company and will provide the financial resources GNA needs to take full advantage of its strong market position and opportunities for future growth -- this is a win-win for both companies." Gary C. Wendt, president and chief executive officer of GE Capital, said: "GNA is a well-managed, carefully positioned financial services company like many of the group of 20 diversified businesses which make up GE Capital. GNA is a recognized leader in one of the fastest growing segments of financial services -- preretirement savings plans. As aging baby boomers augment their retirement savings, this market could more than double in size before the year 2000." "The company's focused, niche marketing strategy of wholesaling products through commercial banks and savings & loans is consistent with our own wholesale orientation," Wendt added. "GE Capital's financial strength and our AAA rating will enable GNA to expand its product offerings and enhance the services that it provides to its clients and their customers." GNA's chief executive officer, Patrick E. Welch, who will continue to manage the company after the acquisition, added, "GE Capital has assured us that we will continue to be an independent, stand-alone operation. The major change going forward will be that we will now have added financial resources to grow our business more rapidly." Founded in 1980, GNA was acquired by Weyerhaeuser in 1983. GNA has four principal and operating subsidiaries: Great Northern Insured Annuity Corp.; First GNA Life Insurance Co. of New York; GNA Securities Inc., a registered broker-dealer; and GNA Capital Management Inc. The company, which will continue to be headquartered in Seattle, employs approximately 920 people nationwide. GE Capital, headquartered in Stamford, Conn., a wholly owned subsidiary of General Electric Company, is a diversified financial services company with assets exceeding $80 billion. GE Capital's activities include equipment and asset management, equipment financing, private label and Visa/Master Card credit cards, automotive financing, consumer/retail financial services, commercial real estate financing, and specialty insurance, such as private mortgage and municipal bonds. GE is a diversified manufacturing, technology and services company with operations worldwide. -0- 1/6/93 /CONTACT: Media: Rich Long, vice president Corporate Communications, 206-924-3047, or manager of Media Relations of GE Capital, 203-357-4728/ (WY GE)
CO: Weyerhaeuser Co.; GE Capital; GNA Corp.; General Electric Co. ST: Washington, Connecticut IN: FIN SU: TNM
SW-LM -- SE002 -- 2091 01/06/93 09:32 EST
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|Date:||Jan 6, 1993|
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