Element Financial said it has entered into a definitive agreement to acquire the business of Cincinnati-based Bush Truck Leasing (BTL) from its founder, Michael Bush. BTL’s current portfolio of finance receivables has a book value of approximately US$55 million.
As part of the transaction, Element also acquired the business of Bush Specialty Vehicles (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,” noted Bradley Nullmeyer, president of Element Financial.
“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 Campbell.
“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.
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.
Originally founded in the 1970s, 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.
McKenna Long & Aldridge 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. acted as legal counsel.
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