Element Financial Corporation completed the acquisition of Nexcap Finance Corporation from the Sherk Family Trust, 1397225 Ontario Limited and Mid Canada Asset Management Corp.
January 12, 2013
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Element Financial Corporation (TSX:EFN) entered into a definitive agreement to acquire Nexcap Finance Corporation from the Sherk Family Trust, 1397225 Ontario Limited and Mid Canada Asset Management Corp. for CAD 98.1 million on December 27, 2012. The consideration includes CAD 20 million cash and assumption of CAD 78.1 million net debt of Nexcap. The transaction will be financed from Element's current cash and the assumption of Nexcap's existing debt facilities. For the year ended December 31, 2011, Nexcap had revenues of approximately CAD 29.57 million, net income of approximately CAD 4.68 million and total assets of CAD 119.98 million.
The transaction is subject to regulatory approval and is expected to close on or before January 28, 2013. The transaction will be immediately accretive to Element's shareholders. GMP Securities L.P. acted as financial advisor to Element and David Toswell, Paul Singh, Shlomi Feiner, Doug Robertson, Rory ffrench, Steve Ashbourne, Peter MacGo-wan, Chris Barker, Debbie Salzberger and Jennifer Ju of Blake, Cassels & Graydon LLP acted as legal advisor to Element in the transaction. KPMG acted as financial advisor and Laurence Gerin-ger, Emma Williamson, Russ Kowalyk, Jesse Brodlieb and Susan Paul of Fraser Milner Casgrain LLP acted as legal advisor to the sellers. Bennett Jones LLP acted as the legal advisor to 1397225 Ontario Limited.
Element Financial Corporation (TSX:EFN) completed the acquisition of Nexcap Finance Corporation from the Sherk Family Trust, 1397225 Ontario Limited and Mid Canada Asset Management Corp. on January 13, 2013.
Element Fleet Management Corp. is a Canada-based global automotive fleet manager. The Company provides business-to-business services and financing to corporations, governments and not-for-profits. It operates in various countries, including the United States, Canada, Mexico, Australia and New Zealand. It provides services and financing for commercial vehicle and equipment fleets, reaching around 56 countries worldwide through the Element-Arval Global Alliance. The Company provides solutions to various industries, such as construction; energy, oil and gas; food and beverage; healthcare; services; transportation, and utilities. Its services include acquisition, electric vehicle, financing, title and registration, collision management, fleet partnerships solutions, fuel, safety, taxable benefits, fleet telematics connectivity solutions, remarketing, sale leaseback, tolls and violations, and strategic fleet consulting. The Company has around 1.5 million client vehicles under management.
Element Financial Corporation completed the acquisition of Nexcap Finance Corporation from the Sherk Family Trust, 1397225 Ontario Limited and Mid Canada Asset Management Corp.
ELEMENT FLEET MANAGEMENT CORP. 
