Element To Acquire GE Capital’s Fleet Operations In The United States, Mexico, Australia, And New Zealand

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Element Financial Corporation announced this morning that it has entered into a definitive agreement with GE to acquire GE Capital’s remaining North American fleet management operations in the U.S. and Mexico, as well as GE Capital’s fleet management operations in Australia and New Zealand for an all-cash purchase price of C$8.6 billion. Element had previously acquired the Canadian operations of GE Capital’s North American fleet management business in June of 2013.

The Association newsletter NAFAConnection reported on June 1 that Element Financial Corporation was raising $2.2 billion of new capital for future acquisitions. This fueled speculation that GE Capital Fleet was the intended recipient of this financial movement.

Integration plans will be finalized prior to closing this transaction to align the fleet management operations of the two companies with the stated objective of "...optimizing the customer experience through enhanced product offerings and state of the art technology. Significant savings are expected to be realized from revenue synergies, expense reductions, and cost of funds improvements. As a result, the Transaction will result in 20 percent accretion to annual EPS based on fully annualized synergies in the range of (U.S.) $90 million to (U.S.) $95 million."

NAFA will continue to monitor this transaction to determine how this will affect NAFA Members and fleet managers who employ the services of these companies. 

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