Earlier today (11/9/12), the monitordaily reported that Element Financial announced it has acquired vendor finance company CoActiv Capital Partners from Marubeni America Corporation and Marubeni Corporation for total consideration of about $300 million including repayment of debt to Marubeni. Subject to the fulfillment of these conditions, the transaction is expected to close on November 30, 2012.

The following was excerpted from the news release, which provides additional details with regard to the transaction:

“CoActiv has longstanding relationships with some of North America’s leading equipment manufacturers as well as an experienced management team that shares our passion for providing equipment vendors with exceptionally powerful tools to help them build and sustain deep relationships with their customers,” noted Bradley Nullmeyer, Element’s president. “This transaction is an important step in Element’s growth strategy and provides a platform allowing us to seamlessly serve the sales financing needs of equipment manufacturers that are active on both sides of the border,” added Nullmeyer.

“I am very excited about the opportunities this transaction presents for our customers and our employees,” noted Don Campbell, who will remain as CoActiv’s CEO following the transaction. “As part of Element Financial, we expect to be able to expand both the number and the depth of the vendor finance programs that CoActiv delivers to the market,” added Campbell.

“The CoActiv acquisition adds a key component to Element’s growth strategy by providing us with an experienced management team, a diversified network of established vendor relationships and a solid U.S. and Canadian origination platform on which to support and service the sales financing needs of North American equipment manufacturers,” noted Steven Hudson, Element’s chairman and CEO.

Established in 2002, CoActiv has expertise in delivering manufacturer supported equipment financing programs. CoActiv originates $220 million of finance contracts annually through more than 15 vendor finance programs with leading manufacturers and their dealer networks in the construction, industrial, office products and technology markets as well as franchise capital reset programs. Through these manufacturer and franchisor supported sales financing programs, CoActiv has established a diversified base of more than 11,000 customer accounts in the U.S. and Canada that includes a wide range of end users – from Fortune 500 companies to small and medium sized businesses to local municipalities.

The transaction will be completed by acquiring all of CoActiv’s shares, and includes the purchase of CoActiv’s current portfolio of US$ denominated finance assets with a net book value of approximately US$260 million and CDN$ denominated assets with a net book value of approximately CDN$50 million.

Barclays and BMO Capital Markets acted as financial advisors to Element on the transaction and Blake, Cassels & Graydon acted as legal counsel. Keefe, Bruyette & Woods acted as financial advisor to Marubeni and CoActiv on the transaction and Sidley Austin acted as legal counsel.

In conjunction with the transaction, Element also announced that it received a new committed term debt facility, fully underwritten by BMO Capital Markets, in the amount of $300 million. This facility was established to fund the transaction as well as CoActiv’s future originations.

To read the full text of the Element Financial news release click here.