GE Capital Enters Multi Million Pound Agreement For European Expansion

The investment group GE Capital is expanding within Europe due to a deal with IAC Group, a global supplier of auto systems and components. GE Capital will lend the car parts supplier £111 million to support working capital needs for IAC and European expansion for itself.

GE is using the arrangement to expand its presence in the Netherlands, Sweden, Spain, Slovakia, Romania, Germany, Poland, the Czech Republic, and Belgium.

IAC creates components for Land Rover, Volvo, Jaguar, Volkswagen, BMW, and Skoda. IAC European Chief Financial Officer Simon Kesterton spoke of the capital-intensive nature of the automotive components industry. He said that the GE Capital-provided solution will enable IAC to expand its manufacturing growth capacity significantly.

The auto parts maker has five UK facilities and will continue to develop its business to support the European automotive sector. Money from CE Capital funding will support component production for the Evoque, a new model from Land Rover.

The new line of credit will run in conjunction with a current $200 million asset-based facility for IAC Group North America, led by GE Capital. The new deal establishes one line of credit that may be flexibly used throughout Europe to target opportunities for growth.

GE Capital EMEA President and Chief Executive Rich Laxer expressed pleasure that his company was able to meet the financial needs of IAC. He commented about the importance of having pan-European reach and expertise in working capital.

According to Mr. Laxer, more European companies are realizing the value of using accounts receivable financing in cross-border operations.

IAC currently has 74 manufacturing facilities spanning 16 countries. It has 22,000 global workers, 6,000 of whom are based in Europe. Through the creation of growth capacity, it will meet the demands of UK residents seeking car finance or outright purchase.

With GE Capital as its partner, this company should realize huge success.