Toronto-based equipment finance company Element Financial Corporation has entered into a definitive agreement to acquire the assets and operations of PHH Arval for approximately $1.4 billion.
“This transformative acquisition achieves all of the strategic and financial objectives that we established when we set out to expand our domestic fleet management business into the U.S. market,” said Steven K. Hudson, Element’s Chairman and Chief Executive Officer. “It provides us with a fully integrated North American fleet management offering that complements our other three business verticals at the same time that it is accretive to our shareholders and immediately improves our capital efficiency,” added Mr. Hudson.
“After carefully evaluating strategic alternatives, the Board and management team believe this transaction best positions our fleet and mortgage businesses to capitalize on their distinct strategic opportunities while maximizing value for our shareholders,” PHH CEO Glen Messina said in a statement.
“PHH Arval’s service culture is renowned in the North American fleet management industry and we are very excited about the opportunities that we see emerging from combining their operations with Element’s existing domestic fleet management business,” said Bradley Nullmeyer, Element’s North American president. “We also see exceptional growth opportunities for the combined business by being able to offer a North American-wide fleet management solution to customers that we service in our other business segments, added Mr. Nullmeyer.