PHH Corp. has entered talks to possibly sell its fleet management unit to Element Financial Corp., a financial and fleet management company that has partnered with GE Capital Fleet Services in Canada, reports The Deal Pipeline.
According to the publication, PHH Corp. officials have declined to comment on the report that attributes the talks to unnamed sources. A PHH spokesman could not be reached for comment on Friday. An analyst cited in the report said PHH Arval could sell for $400 million to $500 million.
The move follows publicly-traded PHH Corp.'s Feb. 11 announcement that it hired J.P. Morgan Securities, Centerview Partners, and Kirkland & Ellis to explore selling the fleet management unit.
Element is a Toronto-based independent equipment finance company that also provides fleet management services in Canada and the U.S. Element has formed a strategic alliance with GE Capital to provide fleet financing and management services.
In July 2013, Element acquired GE Capital's Canadian fleet portfolio, which was combined with its own TLS Fleet Management. Element acquired TLSI Holdings in 2012 from Scotiabank. The business is branded as Element Fleet Management.