Element Financial Corp. (EFN.TO: Quote), an independent equipment finance company, announced that it has completed acquisition of 100% of the shares of Horsham, Pennsylvania-based CoActiv Capital Partners, Inc. from Marubeni America Corporation and Marubeni Corporation for aggregate consideration of approximately $300 million , including repayment of debt to Marubeni.
With the completion of the CoActiv acquisition, Element has increased its finance asset portfolio from approximately $1.1 billion to $1.4 billion .
The approximately $300 million funding required to complete the Acquisition was satisfied through a combination of cash and approximately $230 million advanced under new securitization and related financing arrangements for the acquired finance assets.
As part of the closing of the Acquisition, Element, CoActiv and CoActiv’s Canadian subsidiary entered into arrangements with affiliates of a Canadian Schedule I bank providing for the securitization of substantially all of CoActiv’s finance assets.
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by RTT Staff Writer
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