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Element Closes Transaction to Separate Into Element Fleet Management, ECN Capital

October 04, 2016, 07:03 AM
Filed Under: Industry News

Element Financial Corporation (“Element”), now Element Fleet Management Corp. (“Element Fleet”) and ECN Capital Corp. (“ECN Capital”) jointly announced the completion of the reorganization of Element into two separate publicly-traded companies (the “Separation Transaction”), implemented by way of statutory plan of arrangement (the “Arrangement”).

As a result of the Separation Transaction, Element Fleet, led by Bradley Nullmeyer as CEO, has been established as the world’s largest publicly traded fleet management company with approximately $18.0 billion in assets and ECN Capital, led by Steven Hudson as CEO, has been established as a leading North American commercial finance company with approximately $8.2 billion in owned and managed assets. The Separation Transaction was approved by 99.5% of Element Fleet shareholders at a special meeting of shareholders on September 20, 2016, and by the Ontario Superior Court of Justice (Commercial List) on September 21, 2016.

“Today, two standalone, market-leading companies are emerging from the strong and deep roots that built Element Financial Corporation over the last five years into North America’s largest independent commercial finance company,” said Steven Hudson, Element’s former Chief Executive Officer and current CEO of ECN Capital.
“As separate stand-alone companies we now have an even greater opportunity to focus all of our resources on what will best serve our respective customers, shareholders, partners and employees,” said Bradley Nullmeyer, former President of Element and current CEO of Element Fleet.

“The timely completion of this transaction could not have been achieved without the leadership and determination of Element’s management team, the tireless effort of our employees, guidance from the Board and the support of the Company’s advisors,” said William Lovatt, Element’s former Chairman and current Chairman of ECN Capital.

At closing of the Separation Transaction, Element Fleet and ECN Capital are each owned by Element’s shareholders, with Element shareholders receiving one Element Fleet common share and one ECN Capital common share for each Element common share held prior to the Separation Transaction.

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