STAMFORD, Conn. (AFX) - Pitney Bowes Inc., which makes postage meters and other mailing and shipping equipment, said Monday it completed the $750 million sale of its capital services external financing business to a Cerberus Capital Management LP affiliate.
Under the agreement, the Cerberus affiliate will take on $470 million in nonrecourse debt and other liabilities.
Net proceeds will be used to pay taxes associated with the capital services business, Pitney said.
The new business will be called EntreCap Financial Corp. and will be based in Shelton, Conn.
Pitney Bowes shares rose 15 cents to $40.92 in morning trading on the New York Stock Exchange.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
© 2006 AFX News
