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 Auto Remarketing on both LinkedIn and Twitter.