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June 3, 2014 10:55 AM, EDT
Element to Buy PHH Arval for $1.4 Billion

Element Financial Corp. said it has agreed to acquire PHH Arval, the North American fleet management services business of PHH Corp.

Toronto-based Element will pay about $1.4 billion in cash, a price multiple of 1.56 times PHH Arval’s adjusted book value, Element said in a statement.

PHH Arval had about $4.6 billion in assets as of March 31, of which $4 billion was investment in fleet leases, and generated annual revenue of about $1.7 billion last year.

The deal will provide Element with a “fully integrated North American fleet management offering,” Element Chairman and CEO Steven Hudson said in a statement.

“PHH Arval’s service culture is renowned in the North American fleet management industry, and we are very excited about the opportunities that we see emerging from combining their operations with Element’s existing domestic fleet management business,” added Bradley Nullmeyer, Element’s North American president.

“We also see exceptional growth opportunities for the combined business by being able to offer a North American-wide fleet management solution to customers that we service in our other business segments,” Nullmeyer said.