BMO announces agreement to sell its transportation and vendor financing businesses

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TORONTO - BMO Financial Group says it signed an agreement with U.S.-based Stonepeak for the sale of the bank's transportation and vendor finance businesses.   

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TORONTO – BMO Financial Group says it signed an agreement with U.S.-based Stonepeak for the sale of the bank’s transportation and vendor finance businesses.   

BMO says its transportation finance business provides specialized financing for trucks and trailers while its vendor finance business offers equipment financing through original equipment manufacturers and dealer networks. 

The combined loan and lease portfolios for the businesses in the U.S. and Canada totalled around $14.5 billion as of March 31. 

People make their way past the Bank of Montreal building in the Financial District of Toronto, Monday, Aug. 14, 2023. THE CANADIAN PRESS/Spencer Colby
People make their way past the Bank of Montreal building in the Financial District of Toronto, Monday, Aug. 14, 2023. THE CANADIAN PRESS/Spencer Colby

Under the terms of the agreement, Stonepeak will acquire the assets of the businesses from BMO for cash consideration and an earnout, dependent upon the business reaching certain future performance targets. 

BMO says it will use a portion of the proceeds to invest in a 19.9 per cent equity interest in the new entity. 

The transaction is expected to close in the fourth quarter of 2026.    

This report by The Canadian Press was first published May 11, 2026.

Companies in this story: (TSX:BMO)

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