Establishes US-Based Transportation Finance Capabilities
TORONTO, June 25, 2013 /CNW/ - Element Financial Corporation (TSX: EFN)
("Element") announced today that it has entered into a definitive
agreement to acquire the business of Cincinnati-based Bush Truck
Leasing, Inc. ("BTL") from its founder, Michael Bush. BTL's current
portfolio of finance receivables with a book value of approximately
US$55 million. As part of the transaction, Element also acquired the
business of Bush Specialty Vehicles, Inc., ("BSV") which provides
vehicle up-fitting and maintenance services to BTL and for other
third-party customers. The transaction will be funded from Element's
existing capital resources and is expected to be accretive to Element
shareholders commencing in 2014.
"This strategic acquisition provides a scalable origination platform for
extending our well-established transportation equipment finance
capabilities into the U.S. market," noted Bradley Nullmeyer, President
of Element Financial Corporation.
Originally founded in the 1970's, Bush Truck Leasing and Bush Specialty
Vehicles specialize in providing vehicle financing solutions and
related services to more than 70 national and regional enterprise
clients involved in local pick-up, delivery and transportation
services. This includes providing lease financing for the acquisition
and up-fitting of the required vehicles, principally new and used light
duty trucks, vans and specialized vehicles. Additional details
pertaining to BTL's and BSV's financial results and this transaction
were not disclosed.
"The transaction is transformational for Bush Truck Leasing and Bush
Specialty Vehicle customers, and our employees, as it aligns us with a
financial services partner that truly understands the transportation
equipment market and has the financial capacity to fund our continued
growth," said Michael Bush, Bush Truck Leasing's President and CEO.
"Bush Truck Leasing is a scalable business that has successfully
positioned itself in a segment of the U.S. transportation equipment
market that we believe has excellent growth characteristics," noted Don
Campbell, CEO of Element Financial (USA). "Under Michael's continued
leadership and the improved access to capital that Element is able to
bring to the table, we anticipate growth in this market going forward
as we continue serving the needs of the company's clients," added Mr.
The transaction is expected to close on or before August 31, 2013
subject to customary conditions precedent. Subsequent to closing, the
businesses will be become part of Element's U.S. operations under the
Element Financial brand.
McKenna Long & Aldridge LLP acted as legal counsel to Element in
connection with the transaction. Houlihan Lokey served as exclusive
financial advisor to Bush Truck Leasing and Bush Specialty Vehicles,
while Coolidge Wall Co., L.P.A. acted as legal counsel.
With total assets of approximately $2 billion, Element Financial
Corporation is one of North America's leading independent equipment
finance companies. Element operates across North America in three
verticals 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.
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.
SOURCE: Element Financial Corporation
For further information:
Senior Vice President
Corporate Affairs & Investor Relations
(416) 386-1067 ext. 2313
Chief Financial Officer
(416) 386-1067 ext. 2225