Earlier this week PHH Corp. announced that it agreed to sell its fleet management unit – PHH Arval – to Canada-based Element Financial Corp. for $1.4 million. PHH executives said in a company statement that this move will sharpen the organization’s overall focus, enhance its financial flexibility, and help it deliver greater shareholder value.
PHH said that it will remain in control of its mortgage production and servicing businesses.
PHH Arval spokesman Dico Akseraylian said in a company statement that the organization was started in 1946 and was the first fleet management company in the U.S. However, the sale does not mean that there has been a “loss of faith” in that business.
PHH Corp president and CEO Glen Messina agreed.
“We are confident that we have the right strategy in place to respond to changing mortgage market dynamics and sustain a leading position in the mortgage industry,” Messina said in the release.
Element’s chairman and CEO Steven Hudson said that the acquisition is transformative and achieves all of the strategic and financial objectives that his organization established when it set out to expand into the U.S. market.