NORWALK, Conn. and TORONTO — Element Financial Corp. and GE
Capital announced a definitive asset purchase agreement late last week under
which Element would acquire GE Capital's Canadian fleet portfolio.

The deal the companies entered would also result in Element
and GE Capital creating "a strategic alliance to deliver comprehensive vehicle
fleet financing and management services to cross-border customers in Canada and
the United States."

Drilling down into some of the details of the agreement's
terms, officials noted that Element would acquire GE Capital's existing
Canadian fleet portfolio for consideration of $570 million (CAD)  — subject to adjustments — as well as the GE
Capital Canada fleet operation resources it would need to service the
portfolio.

The plan is to blend these Canadian operations into
Element's existing fleet management business, which is known as TLS Fleet
Management.

Beyond its services to the domestic fleet industry in
Canada, the combined entity operating under the Element Fleet Management brand
will serve Canadian customers under a strategic alliance agreement between
Element and GE Capital Fleet Services.

The companies intend on using this alliance to "pursue
Canada/US cross-border fleet management opportunities."

Per the agreement, there are customary closing conditions,
including approval under the Competition Act (Canada).  As long as these conditions are met, it is
expected for the transaction to close near June 28.

Element chairman and chief executive officer Steven Hudson
said: "This alliance with GE Capital Fleet Services enables Element Fleet to
bring more comprehensive fleet management technologies and solutions to our
existing customers at the same time that it expands our addressable client base
by giving us the capacity to deliver fleet management services to customers
with needs on both sides of the Canada/US border."

Kristi Webb, president and CEO of GE Capital Fleet Services,
added: "This strategic alliance creates significant advantages for our GE
Capital Fleet Services customers operating fleets in Canada," said "Our
customers will enjoy a broader range of services, more geographic coverage and
more feet on the ground in rapidly growing Canadian markets, and diversified
capital funding sources to support their fleet needs."

Kathy Lee, president and CEO of GE Capital Canada, noted:
"We are pleased to announce this alliance with Element Fleet Management and we
would like to take this opportunity to acknowledge the employees' great work in
serving GE Capital Canadian Fleet customers for so many years. This alliance
will give our customers the benefit of access to the services and network of
one of the most respected fleet management companies in Canada." 

Continue the conversation with SubPrime Auto Finance News on LinkedIn and Twitter.