Element Financial Corp. has finalized its acquisition of PHH Arval for $1.4 billion, a transaction that doubles the size of its managed fleet assets, the Canadian firm has announced.

Toronto-based Element closed the cash deal a little more than a month after announcing it had reached terms with PHH Corp. on a cash deal. Element is financing the acquisition through a combination of debt financing and issuing of preferred shares.

The acquisition increases Element's total assets to $10 billion and doubles the number of vehicles it manages, which will now be valued at $6 billion. The company's tangible leverage moves to 3.2:1 from 1.6:1, which allows senior managers to continue growing Element, said Steven Hudson, chairman and CEO.

"This accretive transaction doubles both our asset base and our tangible leverage at the same time that it sets in motion a process for achieving investment grade ratings to reduce our funding costs that will drive incremental returns for our shareholders," Hudson said.

Prior to the acquisition, Element Fleet Management was the No. 2 fleet management company in Canada behind ARI with 112,000 vehicles leased and managed in 2013.

Jim Halliday, president of PHH Arval, will lead Element's fleet management business. Element will serve customers through offices in Sparks, Md., and Mississauga, Ontario, Canada. The company will offer service in 40 countries beyond North America.

"Element's focused and disciplined approach to growth presents us with an exceptional opportunity to deliver new solutions and a broader scope of services to our clients," said Halliday.