Element Financial Closes PHH Arval Acquisition

Element Financial Corporation has closed the previously announced acquisition of the assets and operations of PHH Arval for a purchase price of $1.4 billion U.S. The all-cash transaction increases Element's total assets to $10 billion.

The increased scale of Element's balance sheet also provides the company with the opportunity to underwrite larger transactions in each of its four North American business verticals - Commercial & Vendor Finance, Aviation Finance, Railcar Finance, and Fleet Management. The acquisition and the capital raise are expected to deliver at least ten percent of earnings accretion to common shareholders in 2015.

The transaction is transformational for Element's fleet management business, increasing the size of the company's portfolio of fleet assets to $6 billion. The combined employee base will serve customers through Element Fleet Management's U.S. head office in Sparks, MD, and its Canadian head office in Mississauga, Ontario, supported by the Arval global alliance that will service clients' needs in more than forty countries beyond North America.

Element's Fleet Management business will be led by Jim Halliday, current President of PHH Arval. "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.

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