May 15, 2012 / 12:57 PM / in 6 years

UPDATE 1-Element Financial to buy fleet leasing co from Scotiabank

May 15 (Reuters) - Equipment financing company Element Financial Corp will buy car leasing company TLSI Holdings Inc from Bank of Nova Scotia for C$146.7 million ($146.4 million), excluding debt.

The deal will add more than C$430 million of assets to Element Financial’s leasing business, taking its total to about C$1 billion, the company said in a statement.

TLSI Holdings owns TLS Fleet Management, which has operations across Canada since 1980 and manages over 22,000 leased vehicles. It reported revenue of C$46.1 million for the fiscal year ended June 30, 2011.

Element Financial said it will need nearly C$500 million to fund the transaction, which it will raise through a combination of about C$120 million in cash and about C$380 million TLSI’s financial assets.

GMP Securities and BMO Capital Markets were financial advisors to Element Financial.

The deal is currently expected to close by June 29.

Element Financial also reported a narrower quarterly loss helped by new businesses.

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