General Electric Co. (GE) is seeking buyers for its CareCredit health-care financing division in a sale that may fetch $1 billion, according to two people with knowledge of the matter.
GE is working with Goldman Sachs Group Inc. (GS) to solicit bids, said the people, who asked not to be identified because the process is private. Second-round bids for CareCredit, part of GE Capital, were submitted about a month ago, one of the people said.
Selling CareCredit would extend Chief Executive Officer Jeffrey Immelt’s efforts to shrink GE Capital as he boosts profit from industrial products such as locomotives and jet engines. GE Capital faces heightened regulatory scrutiny from the Federal Reserve, which identified it as a potential risk to the financial system.
CareCredit is the largest issuer of consumer health-care financing in the U.S., according to the New York Attorney General’s office.
GE Capital had $538 billion in assets as of March 31, larger than all but six U.S. banks, according to data compiled by the Fed. The unit’s $45 billion in revenue was 31 percent of Fairfield, Connecticut-based GE’s total sales last year.
The potential sale was reported earlier by Reuters.
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