GE Capital to Buy MetLife Finance Unit

GE Capital Corp., a unit of General Electric Co. and the world’s largest non-bank financial company, said it agreed to buy the commercial finance division of Metropolitan Life Insurance Co. Terms weren’t disclosed, but people familiar with the sale said the price is about $1 billion. Bellevue, Wash.-based MetLife Capital Corp., with about 350 employees, made more than $2.2 billion in loans and leases last year. GE is making the acquisition so it can offer new products to small and medium-size companies, said Chris Richmond, general manager of GE Capital Commercial Equipment Financing. MetLife Capital offers products that Stamford, Conn.-based GE Capital doesn’t, such as financing for real estate and equipment. MetLife Capital will operate as a separate GE Capital unit and report to Richmond, a GE Capital spokeswoman said. New York-based Metropolitan Life Insurance, the second-largest U.S. life insurer, said it is selling the commercial finance business to focus on its core insurance and money management business. GE shares rose $1.88 to close at $89.31 on the New York Stock Exchange. MetLife is owned by its policyholders.