Officials with GE Commercial Finance say that the locally based firm has agreed to pay Bombardier Inc., $1.4 billion in cash and will assume $1 billion in debt and other liabilities related to Bombardier's Inventory Finance Division, which provides floor plan financing for a diverse range of equipment in the US and Canada. The company is part of the financing division of Bombardier Inc., which is based in Montreal.

The Inventory Finance Division is headquartered at 261 Mountain View Dr. in Colchester, VT. Bombardier states that a total of 280 employees based in Colchester and Brossard, Quebec, will be transferred to GE Commercial Finance once the transaction is finalized. In addition to the workers, GE Commercial Finance will also take over ownership of the division's corporate headquarters in Vermont and its facilities in Brossard. Quebec. The closing of the deal is expected in the second quarter of this year.

"GE and Bombardier enjoy a long history together and continue to be strategic partners in multiple industries," comments Mike Neal, president and chief executive officer of GE Commercial Finance. "The acquisition of Bombardier's Inventory Finance business further enhances our ability to provide more business solutions to more customers across the supply chain finance spectrum."

According to Bombardier officials, the transaction will reduce its recorded debt and other net liabilities related to its inventory finance business by approximately $1.6 billion. GE Commercial Finance was represented by Weil, Gotshal & Manges LLP and advised by Citigroup Global Markets in the pending transaction.