BMO Announces Sale of Two Financing Units With C$14.5 Billion Loan and Lease Portfolio
Key Facts
On May 11, 2026, BMO announced a definitive agreement to sell its Transportation Finance and Vendor Finance businesses to Stonepeak, in a deal covering loan portfolios tied to operations in the United States and Canada. The bank’s official disclosure describes the transaction as announced and does not confirm that ownership has transferred. BMO said closing is expected in the fourth quarter of its fiscal 2026, subject to regulatory approvals and customary closing conditions. The units include transportation finance and corporate equipment finance, while Stonepeak said they provide financing solutions for a range of assets and sectors. The news therefore concerns a pending sale agreement, not a completed acquisition as stated in the previous wording.
The units’ combined loan and lease portfolio totaled about C$14.5 billion as of March 31, 2026, according to BMO’s investor presentation on the transaction. Financed assets include trucks, trailers and specialized equipment, with uses in sectors including agriculture and construction. The units operate in the United States and Canada, according to Stonepeak, which said it has more than 700 employees in the two countries. This places the transferred businesses in the realm of commercial financing tied to corporate equipment, rather than general banking. The transaction includes loan portfolios associated with the units as well as the businesses themselves, according to BMO’s filing with the U.S. Securities and Exchange Commission.
The consideration structure combines cash with an additional amount contingent on meeting future performance targets, according to BMO’s disclosure. The bank said it will use part of the proceeds to invest in an approximately 19.9% equity stake in the new entity. That means the sale will not take BMO entirely out of the venture, as it will retain a minority investment after the transaction closes. BMO said the move aligns with its focus on core markets and improving capital efficiency. It also expects the transaction to add about 28 basis points to its Common Equity Tier 1 capital ratio at closing and support return on equity, with no significant impact on future ongoing earnings.
Aaron Levine, BMO’s U.S. president, said the transaction “aligns with BMO’s focus on driving sustainable, profitable growth.” He added that it would allow investment in areas where BMO provides clients with its full suite of services, according to the statement accompanying the bank’s report. Stonepeak said it wants to invest in the growth of the commercial customer base and the platform’s performance, according to the deal announcement. The units provide tailored financing solutions for transportation assets and equipment, including trucks, trailers and specialized equipment for agriculture and construction. The next step is the expected closing in the fourth quarter of fiscal 2026, after regulatory approvals and customary closing conditions are met.