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Goldman Sachs' (GS) GreenSky Sale Considered by a Consortium
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The acquisition of The Goldman Sachs Group, Inc.’s (GS - Free Report) consumer-lending business, GreenSky, is being considered by a consortium led by Sixth Street Specialty Lending, Inc (TSLX - Free Report) . This was first reported by Wall Street Journal.
The consortium includes investment management firms like Pacific Investment Managementand KKR & Co. Inc. (KKR - Free Report) . This consortium overbid Apollo Global Management, Inc.’s (APO - Free Report) final bid in an auction for the sale of GreenSky unit.
Per the Wall Street Journal, the deal would be worth about $500 million, which is way lower than the acquisition price offered by Goldman Sachs. Also,the transaction values GreenSky below the initial management expectations.
Accordingly, in the second quarter of 2023, Goldman Sachs recognized an impairment of goodwill worth $504 million for the sale of its consumer platforms.
In March 2022, GS completed the acquisition of GreenSky, a pre-eminent fintech platform, which offers home-improvement consumer loans. However, this April, the company disclosed its intention to sell GreenSky, with management declaring that the business was not in line with the bank’s “current strategic priorities.”
Markedly, GreenSky's divestment is part of Goldman Sachs’ major business restructuring initiative to focus on its core strengths of investment banking and trading, while reducing its retail footprint.
Apart from divesting its consumer-lending platform, GS is scaling back its ambitions to serve the mass consumers and will focus on serving the ultra-rich. Accordingly, it entered into an agreement to sell its Personal Financial Management unit to Creative Planning, a wealth management and registered investment advisor firm. Though the financial terms were not disclosed, the sale will result in a gain and is expected to be completed in the fourth quarter of 2023.
Goldman Sachs’s shares have gained 7.8% over the past six months compared with the industry’s 3.6% increase.
Image: Bigstock
Goldman Sachs' (GS) GreenSky Sale Considered by a Consortium
The acquisition of The Goldman Sachs Group, Inc.’s (GS - Free Report) consumer-lending business, GreenSky, is being considered by a consortium led by Sixth Street Specialty Lending, Inc (TSLX - Free Report) . This was first reported by Wall Street Journal.
The consortium includes investment management firms like Pacific Investment Managementand KKR & Co. Inc. (KKR - Free Report) . This consortium overbid Apollo Global Management, Inc.’s (APO - Free Report) final bid in an auction for the sale of GreenSky unit.
Per the Wall Street Journal, the deal would be worth about $500 million, which is way lower than the acquisition price offered by Goldman Sachs. Also,the transaction values GreenSky below the initial management expectations.
Accordingly, in the second quarter of 2023, Goldman Sachs recognized an impairment of goodwill worth $504 million for the sale of its consumer platforms.
In March 2022, GS completed the acquisition of GreenSky, a pre-eminent fintech platform, which offers home-improvement consumer loans. However, this April, the company disclosed its intention to sell GreenSky, with management declaring that the business was not in line with the bank’s “current strategic priorities.”
Markedly, GreenSky's divestment is part of Goldman Sachs’ major business restructuring initiative to focus on its core strengths of investment banking and trading, while reducing its retail footprint.
Apart from divesting its consumer-lending platform, GS is scaling back its ambitions to serve the mass consumers and will focus on serving the ultra-rich. Accordingly, it entered into an agreement to sell its Personal Financial Management unit to Creative Planning, a wealth management and registered investment advisor firm. Though the financial terms were not disclosed, the sale will result in a gain and is expected to be completed in the fourth quarter of 2023.
Goldman Sachs’s shares have gained 7.8% over the past six months compared with the industry’s 3.6% increase.
Image Source: Zacks Investment Research
GS presently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.