Capital One Completes Acquisition of Hudson’s Bay Company’s Credit Card Portfolio
Acquisition Extends the Capital One Brand in the Canadian Credit and Loyalty Marketplace <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Toronto, ON (January 11, 2011) – Capital One announced that it has completed the acquisition of the Hudson’s Bay Company credit card portfolio and related assets from GE Capital Retail Finance, first announced on November 9, 2010, thereby almost tripling the number of customer accounts serviced by Capital One Canada.
“This acquisition, and our strategic partnership with the Hudson’s Bay Company, fits well within our overall growth strategy as we continue to expand our distribution channels and grow our customer base in Canada,” said Rob Livingston, President, Capital One Canada. “We are continually looking for ways to broaden our card product offerings for consumers and expand the breadth of services we can provide to our partners.”
The acquired portfolio includes outstanding receivables of approximately $1.3 billion, and the transfer of approximately 400 employees directly involved in servicing the Hudson’s Bay Company’s financial services business from the previous issuer to Capital One.
“We are very proud to have the opportunity to work with the Hudson’s Bay Company. Our goal is to carry on the great traditions of quality and service that are synonymous with this company, by providing innovative card products and services,” said Ian Cunningham, Chief Marketing Officer, Capital One Canada. “We are committed to delivering exceptional value and service to the loyal customers of the Hudson’s Bay Company.”
Forward Looking Statements
The company cautions that its current expectations in this release dated January 11, 2011 and the company's plans, objectives, expectations, and intentions, are forward-looking statements. Actual results could differ materially from current expectations due to a number of factors, including: general economic conditions in the U.S., Canada or the company's local markets, including conditions affecting consumer income, confidence, spending, and savings which may affect consumer bankruptcies, defaults, charge-offs, deposit activity, and interest rates; changes in the labour and employment market; changes in the credit environment; the company's ability to execute on its strategic and operational plans; competition from providers of products and services that compete with the company's businesses; increases or decreases in the company's aggregate accounts and balances, or the growth rate and/or composition thereof; changes in the reputation of or expectations regarding the financial services industry or the company with respect to practices, products, or financial condition; financial, legal, regulatory (including the impact of the Dodd-Frank Act and the regulations to be promulgated thereunder), tax or accounting changes or actions, including with respect to any litigation matter involving the company; and the success of the company's marketing efforts in attracting or retaining customers. A discussion of these and other factors can be found in the company's annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, the company's report on Form 10-K for the fiscal year ended December 31, 2009 as well as its most recent Quarterly Report on Form 10-Q.
About Capital One
Located in Toronto, Ontario, Capital One has offered Canadian consumers a range of competitive MasterCard credit cards since 1996, when the company first introduced the Platinum MasterCard in Canada. Capital One Canada is a division of Capital One Bank, a subsidiary of Capital One Financial Corporation of McLean, Virginia (NYSE: COF).
Contact: Laurel Ostfield 416-549-2753