FLEET FINANCIAL GROUP AGREES TO SELL FLEET FACTORS CORP. TO GFC FINANCIAL CORP.
PROVIDENCE, R.I., Nov. 29 /PRNewswire/ -- Fleet Financial Group (NYSE: FLT) has agreed in principle to sell its factoring and commercial finance subsidiary, Fleet Factors Corp., New York City, to GFC Financial Corp. (NYSE: GFC), Phoenix, Ariz., in an all-cash transaction. Robert J. Higgins, vice chairman of Fleet Financial Group, and Sam Eichenfield, chairman and chief executive officer of GFC, made the announcement. The sales price was not disclosed. Fleet Financial Group acquired Fleet Factors, then known as Ambassador Factors, in 1972. Fleet Factors continues to operate under the trade name Ambassador Factors. The 15th largest factoring company in the United States, Fleet Factors provides factoring and commercial financing principally for such soft-goods companies as textile manufacturers and distributors. The company has total assets of approximately $350 million and will report factoring volume of roughly $800 million for fiscal 1993. Higgins said Fleet decided to sell the factoring unit because "we are not a major player in the factoring business, nor is it a core business of key strategic value. We believe it makes sense to reallocate the capital now invested in Fleet Factors to other business activities that have greater potential for our company." Eichenfield said, "We are pleased to acquire a company with the reputation and performance history of Ambassador. Its emphasis on under- served markets fits well with GFC's strategic focus and allows us to add another niche-oriented line of business to GFC's core commercial finance activities." GFC Financial Corp. is a major domestic commercial finance company that provides secured financing of selected commercial and real estate activities. Howard G. Rubin, president of Fleet Factors since 1972, will continue in that capacity. The transaction is subject to execution of a definitive purchase agreement, regulatory approvals and approval by the boards of directors of both companies. Fleet Financial Group is a $47-billion diversified financial services company listed on the New York Stock Exchange with approximately 1,200 offices nationwide. Its lines of business include commercial and consumer banking, mortgage banking, consumer finance, asset-based lending and equipment leasing, investment management, and student loan processing. -0- 11/29/93 /CONTACT: Robert W. Lougee, Jr., vice president and director, corporate communications, 401-278-5879; or Bruce P. Crooks, 401-278- 6241; or Thomas L. Lavelle, 401-278-3003 (media); Judith B. Ragge, 401-278-6444 (investor), all of Fleet Financial/ (FLT GFC)
CO: Fleet Financial Group; Fleet Factors Corp.; GFC Financial Corp. ST: Rhode Island, Arizona IN: FIN TEX SU: TNM
DJ-CM -- NE010 -- 8366 11/29/93 14:42 EST
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|Date:||Nov 29, 1993|
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