Element Financial Corp. plans to split into two publicly traded companies — one devoted to fleet management and the other to equipment finance.
The decision comes after completion of a strategic review of operations initiated in October and will lead to the creation of Element Fleet Management and Element Commercial Asset Management as separate, stand-alone companies.
Element Fleet Management owns and operates car and truck assets valued at $19.5 billion for corporations in the United States., Canada, Mexico, Australia and New Zealand. Element Commercial Asset Management provides loans and vendor financing of aircraft and rail assets valued at $7 billion.
“We’ve concluded that Element is comprised of two very different businesses that will be more effective at maximizing performance for the benefit of shareholders, lenders, customers and employees if they are structured and capitalized as separate public companies,” CEO Steven Hudson said in a statement Feb. 16.