Element to Acquire Cincinnati-based Bush Truck Leasing
Establishes US-Based Transportation Finance Capabilities
TORONTO--(BUSINESS WIRE)--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”
“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. Campbell.
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.