NEW YORK (TheStreet) -- PHH Corp. (PHH) announced today that as of July 1, it completed the sale of its fleet management services business, known as PHH Arval, to Element Financial Corp. (ELEEF) for a $1.4 billion cash consideration.
The company is an outsource provider of mortgage and fleet management services.
PHH said the completion of the sale gives the company the flexibility to return significant capital to its shareholders, reduce unsecured debt, re-engineer its mortgage business, and find opportunities to increase profitability.
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The deal is expected to generate $821 million in net proceeds, after taxes and transaction expenses, PHH said.
Shares of PHH Corp. closed lower by -0.47% to $23.28 on Monday.
TheStreet Ratings team rates PHH CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PHH CORP (PHH) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow and feeble growth in its earnings per share."