Real assets fund manager Stonepeak is acquiring BMO Financial’s US-based transportation and vendor finance business as part of a new partnership between the two firms.
Stonepeak has agreed to acquire BMO Transportation and Vendor Finance in a deal that sees BMO retain a 19.9% minority interest in the business.
BMO Transportation and Vendor Finance has over 700 employees across the US and Canada and provides financing for transportation assets and equipment, including trucks, trailers and machinery for the agriculture and construction sectors.
Will Schleier, senior managing director at Stonepeak, said: “Building on decades of sector expertise, BMO Transportation and Vendor Finance has established itself as one of North America’s premier transportation financing platforms.
“We are excited to work closely with BMO and the outstanding leadership team in place to invest further in the business, build on its strong performance and grow its commercial customer base while preserving the culture, reputation and relationships that have made the business so successful to date.”
The transaction expands Stonepeak’s footprint in transportation-focused asset leasing, joining a portfolio that includes nine platforms, such as Textainer, Air Transport Services and TRAC Intermodal.
Gary Kempinski, head of transportation finance and vendor finance at BMO, said: “We could not have envisioned a better partner to lead BMO Transportation and Vendor Finance into its next chapter.
“Stonepeak brings deep experience, operating expertise and relationships in North American transportation and logistics infrastructure and particularly in asset-leasing businesses. With their support and strategic partnership, we are positioned incredibly well for sustained success.”
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