BMO Financial Group in Toronto has agreed to sell its transportation finance and vendor finance businesses, including loans in the U.S. and Canada, to Stonepeak in New York.
Stonepeak will pay a cash amount and an earnout contingent. BMO will use a portion of the consideration to invest in a roughly 19.9% stake in the new entity. The deal is expected to close in the fourth quarter of fiscal 2026.
The combined loan and lease portfolio totals about $10.6 billion.
The $1.5 trillion-asset BMO expects to record a net after-tax charge of about $657 million primarily tied to goodwill.
“This transaction is consistent with BMO’s focus on delivering sustained profitable growth, and enables us to invest in areas that deliver the full power of BMO to our clients,” Aron Levine, president of BMO U.S., said in the release. “We’re allocating capital to areas with strong potential for long-term value creation while obtaining an equity interest in future income of the transportation and vendor finance businesses through a more capital efficient structure.”