Under the terms of the agreement, Element will acquire GE Capital’s existing Canadian fleet portfolio for consideration of C$570m subject to adjustments, along with the GE Capital Canada fleet operational resources required to service this portfolio. These Canadian operations will be combined with TLS Fleet Management, Element’s existing fleet management business. 

In addition to serving the domestic Canadian fleet industry, the combined entity operating under the Element Fleet Management brand will serve Canadian customers under a Strategic Alliance Agreement between Element and GE Capital Fleet Services. Through the long-term Strategic Alliance, the two companies will jointly pursue Canada/US cross-border fleet management opportunities.

‘This alliance with GE Capital Fleet Services enables Element Fleet to bring more comprehensive fleet management technologies and solutions to our existing customers at the same time that it expands our addressable client base by giving us the capacity to deliver fleet management services to customers with needs on both sides of the Canada/US border,’ said Steven K Hudson, Element’s chairman and CEO.

Kathy Lee, president and CEO of GE Capital Canada, added: ‘We are pleased to announce this alliance with Element Fleet Management and we would like to take this opportunity to acknowledge the employees’ great work in serving GE Capital Canadian Fleet customers for so many years. This alliance will give our customers the benefit of access to the services and network of one of the most respected fleet management companies in Canada.’ 

The agreement provides for customary closing conditions, including approval under the Competition Act (Canada). Subject to the satisfaction of such conditions, the Acquisition Transaction is expected to close on or about 28^th June 2013.