Hudson’s Bay Company (HBC) and GE Money, the Canadian consumer lending unit of General Electric Company today announced an acquisition agreement and 10-year alliance in which GE Money will purchase the private label credit card and related financial services assets of HBC.

The department store retailer says it anticipates proceeds of approximately $370 million net of securitized receivables and related costs and taxes. It adds that HBC customers will be able to continue to use their Hbc cards, and will continue to enjoy access to the HBC rewards program.

Under the 10-year alliance, GE Money will provide credit marketing and analytic support, credit servicing and customer care for HBC’s 3.1 million retail cardholders. Over the term of the alliance, HBC says it expects to realize financial benefits similar to the historic earnings levels from HBC’s Financial Services business.

The acquisition will also include the transfer of approximately 650 HBC employees directly involved in the financial services business to GE Money. These employees will continue to work at their current locations, at operations centres in Montreal, Toronto and Vancouver. GE Money currently has 600 employees at its headquarters in Mississauga and its operations centre in Edmonton.

“HBC’s alliance with GE Money allows the company to continue providing excellent credit and financial services to our customers,” said George Heller, president and CEO of HBC, in a release.

“This new alliance opens up great opportunities to offer enhanced products, benefits and value to Hudson’s Bay Co. customers while helping drive growth at both HBC and GE,” said Stephen Motta, president and CEO, GE Money.

The deal is subject to regulatory approvals and closing conditions. Hbc has not yet made a final determination as to the use of the upfront proceeds.

Goldman, Sachs & Co. and BMO Nesbitt Burns Inc. served as advisors to Hbc on the transaction.

GE Money is part of GE Consumer Finance-Americas and provides private label credit card and MasterCard programs to consumers, and lending options for retailers in key industries across Canada. GE Money also is a provider of alternative residential mortgages.