GE GE Aerospace

General Electric Co. agreed to sell its corporate aircraft financing portfolio in the Americas to Global Jet Capital in a deal valued at roughly $2.5 billion, as the conglomerate proceeds with its plan to focus more on its industrial businesses.

GE Capital Chairman and Chief Executive Keith Sherin said Global Jet Capital is "an up-and-coming player in the corporate aircraft space" and is a "well-backed private-equity player eager to expand its corporate aircraft portfolio."

Earlier this year, GE said it would divest itself of the bulk of GE Capital, the giant finance business that had long accounted for about half of its profits but whose risks had rattled investors and weighed on its stock. GE had been scaling down GE Capital since the financial crisis in 2008. But the finance arm was still large enough that federal regulators designated it as a "systemically important financial institution," subjecting it to tougher regulatory standards.

With the corporate aircraft portfolio deal, expected to close over the next several months, GE Capital said it has announced a total of $97 billion in deals this year. The transaction is expected to contribute roughly $300 million toward GE's dividend target of $35 billion under the divestment plan.

The corporate aircraft portfolio includes loans and leases as well as more than 300 fixed-wing aircraft across the U.S., Canada, Mexico and Latin America. A team of GE employees linked to the business also will be retained by Global Jet Capital.

Write to Tess Stynes at tess.stynes@wsj.com

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(END) Dow Jones Newswires

October 05, 2015 10:15 ET (14:15 GMT)

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