Element Financial Closes Acquisition of GE's Fleet Unit
Element Financial Corp. has closed its acquisition of GE Capital's U.S. fleet business and will now turn its attention toward integrating the two entities, the Toronto-based company announced Aug. 31.
by Staff
August 31, 2015
2 min to read
Element Financial Corp. has closed its acquisition of GE Capital's U.S. fleet business and will now turn its attention toward integrating the two entities, the Toronto-based company announced Aug. 31.
The transaction closing triggers the conversion of outstanding subscription receipts to common shares and extends the maturity of 4.25-percent convertible debentures to June 30, 2020, the company announced.
Ad Loading...
Element Financial, which acquired GE Capital's Canadian fleet business in June of 2013, expects to realize up to $95 million in savings by merging the two companies. Upon completion of the merger, Element Financial plans to pursue another merger target, said Steve Hudson, Element's chief executive.
"Based on our experience integrating previously acquired fleet management platforms, we are very confident in our ability to meet or exceed our previously announced $90 million to $95 million integration savings target and to be in a position to re-engage in the consolidation of this industry by the mid-point of 2016," Hudson said in a release.
In 2014, GE Capital Fleet Services reported 883,857 vehicles funded and managed, including 703,128 trucks and 180,729 cars.
The closing of the merger also finalizes several new roles announced a week ago, including the naming of Kristi Webb as president of Element Fleet Management. Webb was the president of GE Capital Fleet Services. Jim Halliday moves into a more strategic and global role as executive vice president with Element Financial.
With a string of acquisitions, including its $1.4-billion purchase of PHH Arval in June of 2014, Element is moving aggressively to unlock additional cash flows in the fleet management industry.
Ad Loading...
"The fleet management industry is a primary focus for Element Financial Corporation as a platform for delivering strong cash flows for our business, leading-edge products and services for our customers, challenging career opportunities for our employees and attractive returns for our investors," said Brad Nullmeyer, Element Financial's president.
In addition to its integration initiative, Element Financial will also move toward closing acquisitions of GE Capital's fleet units in Mexico, Australia, and New Zealand.
48% of field service leaders are investing in AI to manage customer communication and self-service. Get the latest on how fleets are using AI and thinking about the future.
Help shape fleet services! Share your insights in the 2025 Fleet Management Company Research survey. Quick, anonymous, and impactful for fleets of all sizes.
Paccar Leasing’s PacLease marks 45 years of full-service leasing operations, growing from 17 franchises to a global network supporting nearly 41,000 vehicles across five countries.
Penske Truck Leasing powers up with solar! Discover how new rooftop systems at U.S. locations are driving sustainability, cutting costs, and reducing emissions.
Holman celebrates 100 years of innovation in automotive services, from fleet management to vehicle upfitting, while staying true to its customer-first philosophy.