BMO to sell transportation, vendor finance businesses to investment firm Stonepeak
BMO to sell transportation, vendor finance businesses. The Toronto-based bank will take a 19.9% equity interest in the new entity as part of its deal with alternative investment firm Stonepeak.
BMO’s transportation finance business offers specialized financing for trucks and trailers mainly through dealer-managed relationships, while its vendor finance business handles equipment financing through equipment manufacturers and their dealer networks, the $1.5 trillion-asset bank said.
BMO will sell its transportation and vendor finance business to alternative investment firm Stonepeak ®, the bank said Monday.
The sale, part of Toronto-based BMO’s efforts to zero in on core markets and enhance capital efficiency, includes related loan portfolios in the U.S. and Canada totaling C$14.5 billion ($10.6 billion) as of the end of March.
Under the terms of the deal, Stonepeak will acquire the business assets for cash consideration and an earnout contingent upon the achievement of certain performance targets, and BMO will use a portion of the consideration to take a 19.9% equity stake in the business. The transaction is expected to close in the fourth quarter of fiscal 2026, the bank said.
The businesses, based in Irving, Texas, serve as one of the largest lenders to the commercial truck and trailer segment in North America, with about 700 employees and operations in the U.S. and Canada, Stonepeak said in its news release.” - according to Caitlin Mullen Senior Editor
