BMO Financial Group agreed on 11 May to sell its Transportation Finance and Vendor Finance businesses to Stonepeak, an alternative investment firm specialising in infrastructure and real assets.
Why Stonepeak is buying BMO Transportation Finance and Vendor Finance
BMO said the sale improves capital efficiency and sharpens its focus on core markets, while its retained 19.9% stake lets it share in future income. Stonepeak said it would invest further in the business and grow its commercial customer base.
Deal terms and financing
Financial terms were not disclosed. BMO will reinvest for a 19.9% equity interest. The deal is backed by asset-based financing from PGIM and bank financing with Bank of America as lead arranger.
Regulatory approvals and timing
Closing is expected in the fourth quarter of 2026, subject to customary conditions including regulatory approvals.
Market context
Based in Irving, Texas, BMO Transportation and Vendor Finance is one of the largest lenders to the commercial truck and trailer segment in North America, with more than 700 employees in the US and Canada. It will continue to be led by Gary Kempinski.
