Element Announces Largest Win Since its Pivot to Growth in 2021
December 19, 2022
Element adds 16,500 Rentokil Terminix vehicles to the 4,700 already under their management in the U.S., pursuant to a five-year contract
TORONTO, December 19, 2022 – Element Fleet Management Corp. (TSX: EFN) (“Element”), the largest pure-play automotive fleet manager in the world, today announced a five-year agreement with Rentokil Terminix, the North American division of Rentokil Initial plc, to provide services and financing to its 21,000+ vehicle fleet in the U.S.
"We are honored that Rentokil Terminix has chosen to expand their North American relationship with Element, making us their sole U.S. provider of fleet management services and financing," said Jay Forbes, President and Chief Executive Officer of Element. "Rentokil, the global leader in pest control services, represents Element’s largest 'mega' fleet win since initiating our pivot to growth in 2021."
Rentokil Initial plc has been a long-standing client of Element. With its recent acquisition of Terminix, the company decided to consolidate the financing and management of its entire U.S. vehicle fleet under one fleet management company and chose Element as that provider. Under the terms of this agreement, Element will extend its current fleet management services and financing (currently 4,700 vehicles) to an additional 16,500 Rentokil Terminix vehicles in the U.S., increasing the total global vehicles under management by a full 1 percent and making Rentokil Terminix a top 10 client. This partnership will also enable Rentokil Terminix's mission to transition its global fleet to more efficient and sustainable ultra-low emissions vehicles (ULEVs) by 2040. Rentokil Initial joined the EV100 in 2020.
David Madrigal, Chief Commercial Officer of Element, said: "Rentokil Terminix's decision to entrust the entire 21,000 vehicle fleet to Element is both gratifying and humbling, reflecting their confidence in our proven ability to deliver a consistent, superior client experience and optimize their total cost of fleet operations. We are very pleased they have decided to grow their relationship with Element, and we look forward to working with them to uphold the high standards we share for our clients globally as we both continue to grow."
About Element Fleet Management
Element Fleet Management (TSX: EFN) is the largest pure-play automotive fleet manager in the world, providing the full range of fleet services and solutions to a growing base of loyal, world-class clients – corporates, governments and not-for-profits – across North America, Australia and New Zealand. Element enjoys proven resilient cash flow, a significant proportion of which is returned to shareholders in the form of dividends and share buybacks; a scalable operating platform that magnifies revenue growth into earnings growth; and an evolving capital-lighter business model that enhances return on equity. Element’s services address every aspect of clients’ fleet requirements, from vehicle acquisition, maintenance, accidents and remarketing, to integrating EVs and managing the complexity of gradual fleet electrification. Clients benefit from Element’s expertise as the largest fleet solutions provider in its markets, offering unmatched economies of scale and insight used to reduce fleet operating costs and improve productivity and performance. For more information, visit elementfleet.com/investor-relations.
Vice President, Investor Relations
Vice President, Communications
This press release includes forward-looking statements regarding Element and its business. Such statements are based on the current expectations and views of future events of Element’s management. In some cases the forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, “potential”, “estimate”, “believe” or the negative of these terms, or other similar expressions intended to identify forward-looking statements, including, among others, statements regarding Element’s enhancements to clients’ service experience and service levels; enhancement of financial performance; improvements to client retention trends; reduction of operating expenses; increases in efficiency; EV strategy and capabilities; global EV adoption rates; redemption of the Series I Shares; dividend policy and the payment of future dividends; creation of value for all stakeholders; expectations regarding syndication; growth prospects and expected revenue growth; level of workforce engagement; improvements to magnitude and quality of earnings; executive hiring and retention; focus and discipline in investing; balance sheet management and plans to reduce leverage ratios; anticipated benefits of the balanced scorecard initiative; Element’s proposed share purchases, including the number of common shares to be repurchased, the timing thereof and TSX acceptance of the NCIB and any renewal thereof; and expectations regarding financial performance. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause Element's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Such risks and uncertainties include those regarding the ongoing COVID-19 pandemic, risks regarding the fleet management and finance industries, economic factors and many other factors beyond the control of Element. A discussion of the material risks and assumptions associated with this outlook can be found in Element's annual MD&A, and Annual Information Form for the year ended December 31, 2021, each of which has been filed on SEDAR and can be accessed at www.sedar.com. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.