Canadian leasing giant takes on GE Capital fleet management operations

Canadian company Element Financial Corporation, one of North America’s leading fleet management and equipment finance companies, has acquired GE Capital’s fleet management operations in Mexico, together with the company’s fleet management operations in Australia and New Zealand doing business as Custom Fleet.

The latest move follows on from Element’s previous acquisition of the Canadian operations of GE Capital’s fleet management business in June of 2013, and its purchase of GE Capital’s US fleet management operations on August 31, 2015.

Element’s combined fleet management business now accounts for approximately $13.0 billion or 70% of the company’s $18.6 billion in total earning assets as at September 30, 2015, it said in a formal announcement of the conclusion of the deal.

“Through these transactions, Element’s fleet management capabilities have been expanded to cover the entire North American continent and the Element/Arval Global Alliance has been strengthened by our acquisition of GE Capital’s Custom Fleet operations in Australia and New Zealand,” noted Bradley Nullmeyer, Element Financial Corporation’s president.

“Working with guidance from our customers, both large and small, I strongly believe that the unmatched technical expertise and unwavering customer focus of this integrated fleet enterprise will serve as a catalyst for innovation across all segments of this industry,” added Nullmeyer.

General Electric is mid-way through a strategy of divesting the company of its financial businesses, most of which have been run by GE Capital, as it seeks to refocus its operations on its traditional manufacturing base.

“The acquisition of these GE Capital fleet management operations positions Element to achieve strong earnings growth from both the expansion of our addressable market for fleet management services and through the deeper penetration of that market with an expanding range of fee-based value-added services,” said Steven Hudson, Element’s chief executive officer.