Element Fleet Management announced the sale of approximately 60% of its heavy-duty U.S. truck portfolio for cash proceeds of approximately C$138 million ($113.2 million), in excess of book value.

“We are pleased to announce this asset sale at an attractive value and which is consistent with our previously disclosed strategy to prudently reduce our non-core assets over time,” said Bradley Nullmeyer, chief executive officer of Element Fleet Management. “The sale will allow us to realize value for these assets and to return capital to all stakeholders, including continuing to repurchase the company’s common shares under the approved normal course issuer bid.”

Element previously indicated that the company would seek to maximize the value of its non-core assets, including potential divestitures. Following this sale, non-core assets have decreased to approximately 7% of Element’s total asset base, and this amount is expected to decline further as the company executes its strategic plan and grows its core fleet platform and services. While Element provided guidance for its core fleet business, it has not and does not intend to provide guidance related to the non-core segment given the less predictable earnings profile of these assets.