Goldman Sachs Group, Inc.
Goldman did not disclose the selling price. Goldman is poised to absorb an instant blow to its third-quarter earnings as a direct fallout from the GreenSky transaction.
The deal will result in a $(0.19) earnings per share impact on Goldman Sachs' Q3, which is expected next week.
The Consortium acquiring GreenSky is led by Sixth Street and consists of funds and accounts managed by KKR & Co. Inc.
GreenSky, primarily a 'Buy Now, Pay Later' firm, focuses on home improvement loans. However, the sector has felt the pinch of escalating interest rates, as borrowers exhibit sensitivity towards assuming more costly loans, according to a news report by the New York Times.
On the other hand, Goldman has essentially conceded its consumer banking business amid a collapse in the unit's profits, the report read.
In fact, the company's executives had previously indicated the bank would almost certainly divest GreenSky, the New York Times said.
"While GreenSky is an attractive business, we are focused on advancing the strategy we laid out for our two core franchises," said David Solomon, Chairman and CEO of Goldman Sachs.
Goldman Sachs will continue to operate the platform and record ongoing business results, including the impact of an agreement for the Consortium to purchase newly originated loans.
"GreenSky accelerates business growth for its network of home improvement merchants by delivering innovative payment solutions at the point of sale, and we plan to continue the company's legacy of driving growth through enhanced technology and great user experiences," said Alan Waxman, Co-Founder and CEO of Sixth Street.
Price Action: GS shares are trading higher by 0.63% to $314.98 on the last check Thursday.
