Business Services Industry
Transamerica Corporation sells its consumer finance business to Household International for $1.1 billion
Business Wire, May 21, 1997
SAN FRANCISCO--(BUSINESS WIRE)--May 21, 1997--Transamerica Corporation (NYSE:TA) and Household International (NYSE:HI) announced today that they have signed a definitive agreement for Household to purchase the consumer lending business of Transamerica, for $1.1 billion in cash.
The closing is subject to receipt of various regulatory approvals.
The business being sold had a book equity of $487 million at March 31, 1997. The gain which will be reported by Transamerica Corporation at the closing will take into account taxes, writedowns of intangibles and the result of the continuing liquidation or sale of the remaining $280 million of special assets.
Proceeds from the transactions, net of expenses, will be used to pay down debt, to purchase Transamerica Corporation's common stock and for other corporate purposes. Transamerica Corporation also announced that its board of directors has authorized the purchase of up to 6 million of the company's common shares.
"This transaction is not only good for our shareholders, but also Household will be a good home for the customers and employees of the consumer finance operations," said Frank C. Herringer, chairman and chief executive officer of Transamerica Corporation.
William F. Aldinger, chairman and chief executive officer of Household, said, "We are extremely pleased to have reached this agreement with Transamerica. This acquisition brings us a very high quality portfolio of real estate-secured loans, a great branch network, and many talented employees. We and our associates at Transamerica are committed to a smooth and seamless transition."
San Francisco-based Transamerica Corporation, which had consolidated assets of $50 billion at March 31, 1997, provides specialized financial and life insurance products and services to individuals and organizations worldwide.
Household International, through its subsidiaries, is a leading provider of consumer financial services, primarily consumer lending and credit card products, in the United States, Canada and the United Kingdom.
CONTACT: Transamerica Corporation
William H. McClave, 415/983-4087 (press)
James F. McArdle, 415/983-5503 (investment community)
Most Recent Business Articles
- Multiple criteria evaluation and optimization of transportation systems
- Multi-criteria analysis procedure for sustainable mobility evaluation in urban areas
- A two-leveled multi-objective symbiotic evolutionary algorithm for the hub and spoke location problem
- Multi-criteria analysis for evaluating the impacts of intelligent speed adaptation
- The development of Taiwan arterial traffic-adaptive signal control system and its field test: a Taiwan experience
Most Recent Business Publications
Most Popular Business Articles
- 7 tips for effective listening: productive listening does not occur naturally. It requires hard work and practice - Back To Basics - effective listening is a crucial skill for internal auditors
- FAS 109: a primer for non-accountants - Financial Accounting Standards Board's "Statement 109: Accounting for Income Taxes"
- Design a commission plan that drives sales - Sales Commissions
- Too Young to Rent a Car? - 25-years-old the minimum age for car renting - Brief Article
- Getting the global view: Nestle, led by Peter Brabeck-Letmathe, climbs to the #1 spot in this year's Best Companies for Leaders
Most Popular Business Publications
Content provided in partnership with
