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Element Financial Closes CoActiv Acquisition; Portfolio Grows to $1.4 Billion

December 03, 2012, 07:22 AM
Filed Under: Mergers & Acquisitions

Element Financial Corporation ("Element" or the "Company") announced that it has completed the previously announced acquisition of 100% of the shares of Horsham, Pennsylvania-based CoActiv Capital Partners, Inc. ("CoActiv") from Marubeni America Corporation and Marubeni Corporation (collectively "Marubeni") for aggregate consideration of approximately $300 million, including repayment of debt to Marubeni (the "Acquisition").

With the completion of the CoActiv acquisition, Element has increased its finance asset portfolio from approximately $1.1 billion to $1.4 billion.

The approximately $300 million funding required to complete the Acquisition was satisfied through a combination of cash and approximately $230 million advanced under new securitization and related financing arrangements for the acquired finance assets. As part of the closing of the Acquisition, Element, CoActiv and CoActiv's Canadian subsidiary entered into arrangements with affiliates of a Canadian Schedule I bank providing for the securitization of substantially all of CoActiv's finance assets.

Barclays and BMO Capital Markets acted as financial advisors to Element in connection with the Acquisition and Blake, Cassels & Graydon LLP acted as legal counsel.

With total assets of approximately $1.5 billion, Element Financial Corporation is Canada's leading independent equipment finance company. Element operates nationally 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 through the Company's TLS Fleet Management division.

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