BMO said to weigh $1 billion sale of transportation finance arm
Potential buyer has roughly $11B in assets
Bank of Montreal is exploring a sale of its transportation finance business, which could fetch about $1 billion, according to people familiar with the matter.
The Montreal-based lender has been reaching out to potential buyers for the asset, which could appeal to private equity and private credit players, said the people, who asked to not be identified because the details aren’t public. The business has about $11 billion of assets, the people said.
No final decision has been made and BMO could opt to hold onto the business. A representative for BMO declined to comment.
BMO describes its transportation finance business as one of “North America’s leading providers of truck and trailer financing,” according to its LinkedIn page. It offers loans, leases, inventory financing and other services to original equipment manufacturers, dealers and private fleet operators, according to its website.
The unit traces its roots to GE Capital’s transportation finance business in the US and Canada, which BMO acquired in 2015.
