Element Signs Vendor Finance Agreement with Tremcar Inc.
TORONTO, Oct. 26, 2012 /CNW/ - Element Financial Corporation (TSX: EFN) ("Element" or "the Company"), Canada's leading independent equipment finance company, today announced that it has signed a comprehensive vendor finance agreement with Tremcar Inc, Canada's leading manufacturer of tank trailers.
The multi-year agreement provides Element with the opportunity to offer point-of-sale equipment financing to Canadian customers of Montreal-based Tremcar which manufactures custom-made stainless steel and aluminum tank trailers used in a wide variety of industries from food transportation to energy development. In addition to providing equipment financing solutions to Tremcar end users, as part of the agreement, Element has provided Location Tremlease Inc. with a fleet financing facility to increase the number of tank trailers that Tremcar's affiliate rents to customers.
"We have had an informal relationship with Tremcar for some time and have grown to understand the financing needs of their customers," noted Todd Hudson, Element's Executive Vice President. "This formal vendor finance agreement is a natural extension of this relationship and provides Element with access to a high quality customer base acquiring a best-in-class asset," added Mr. Hudson.
"This agreement provides Tremcar and Location Tremlease customers with direct access to innovative and effective equipment financing solutions from Canada's largest independent finance company," noted Jacques Tremblay, Tremcar's Chairman.
The domestic tanker market continues to grow at a rapid pace. As the leading Canadian manufacturer of a full line of tanker trailers for the chemicals, food and petroleum distribution industries, Tremcar is well positioned to participate in this growth. Approximately 70 percent of Tremcar's production is sold in Canada, with the remaining 30 percent sold in the US. Element anticipates expanding Tremcar's vendor program into the US market once the Canadian facility is fully deployed across Tremcar's domestic operations.
About Tremcar Inc. and Location Tremlease Inc.
With sales and distribution operations across Canada and the US, and manufacturing facilities in Quebec, Ontario (under the Hutchinson trade name) and Ohio, family-owned Tremcar was founded in 1962 and has grown to become a leading manufacturer of tank trailers for the North American market. Its product line includes stainless steel and aluminum tanks trailers used in a wide variety of industries for the transportation of liquids and dry bulk materials. Location Tremlease provides short and long term rental services to Tremcar's customers in Canada.
About Element Financial Corporation
With total assets of approximately $1 billion, Element Financial Corporation is Canada's leading independent equipment finance company. Element operates nationally in three segments of the equipment finance market - Element Capital provides large ticket equipment leasing, Element Finance serves the mid-ticket equipment finance market and Element Fleet provides vehicle fleet leasing and management solutions through the Company's TLS Fleet Management division.
Forward Looking Statements
This release includes forward-looking statements regarding Element and its business. Such statements are based on the current expectations and views of future events of Element's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
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