Bennington acquisition adds expertise for Desjardins

Canadian financial cooperative Desjardins Group plans to expand its equipment leasing offerings and strengthen its broker distribution network through the acquisition of Bennington Financial. 

“Bennington brings a specialized equipment leasing capability that Desjardins does not currently have at scale,” Jean-Yves Bourgeois, executive vice president of business services at Desjardins Group, told Equipment Finance News.  

Desjardins is Canada’s largest cooperative financial group and the eight largest in the world, according to the group’s Oct. 29 release. 

Bennington will retain its name and operate as a standalone Desjardins subsidiary, Bourgeois said.  

“Our priority following closing will be continuity and building on the expertise, relationships and service model that have contributed to Bennington’s success,” Bourgeois said. 

“Bennington’s distribution network, based on broker relationships, will be maintained and strengthened,” he said. “Broker partners will continue to be a critical part of the business model.” 

Equitable Bank, a subsidiary of EQB, agreed to sell Bennington to Desjardins, according to the Oct. 29 Desjardins release. Bennington held approximately CA$1.1 billion ($792 million) in lease receivables as of July 31, according to the release. 

The transaction is expected to close in the first half of 2027, according to Equitable’s release.  

Specialized leasing capabilities 

Bennington will bring underwriting, asset management and asset-backed financing expertise, complementing Desjardins’ existing business and equipment financing operations, Bourgeois said. 

The added capabilities will strengthen Levis, Quebec-based Desjardins’ ability to support businesses in manufacturing, agriculture, agri-food, construction and healthcare, he said. 

Canadian business investment in machinery and equipment rose 5.2% quarter over quarter in the second quarter, marking its third consecutive quarterly increase, according to an Oct. 28 Statistics Canada report. Spending on industrial machinery and equipment also increased for a third straight quarter. 

EQB redirects capital 

The sale will allow EQB to concentrate on its core growth priorities following its PC Financial transaction, President and Chief Executive Chadwick Westlake said in the release. EQB completed its acquisition of PC Financial from Canadian retailer Loblaw on July 1, making the bank the exclusive financial services partner for the PC Optimum loyalty program, according to a release that day. 

Desjardins will acquire all of Oakville, Ont.-based Bennington’s shares at about an 8% discount to lease receivables, according to the release. The final purchase price will be determined at closing, Bourgeois said. 

Desjardins did not provide further details on the discount or the treatment of Bennington’s funding liabilities. 

Editor’s note: All amounts have been converted to U.S. dollars.  

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