BMO Financial Group and its wholly owned Chicago-based subsidiary BMO Harris Bank N.A. recently announced the signing of an agreement with General Electric Capital Corp. to acquire GE Capital's transportation finance business in the United States and Canada.
Net earning assets as of June 30 amount to $8.7 billion.
"BMO Financial Group is recognized as a market leader in commercial banking in both the U.S. and Canada; it is a core strength of the bank," CEO Bill Downe said. "The transportation finance assets we are acquiring have many of the characteristics of other business segments in which BMO has proven capability. This represents a unique opportunity to grow our commercial customer base. Our strong capital position provides us with the flexibility to complete this acquisition, which is consistent with our strategy and well aligned with our risk profile. We look forward to welcoming GE's customers and the professionals who serve them to BMO later this year."
Based in Irving, Texas, GE Capital's Transportation Finance business is the largest financier to the commercial truck and trailer segment in North America, with a track record of providing wholesale and commercial end user financing solutions to the transportation industry for more than 40 years. The business services the entire supply chain from industry leading original equipment manufacturers and dealers to a diverse set of end-users, operating out of 11 locations in the United States and four in Canada, with approximately 600 employees.
"We're acquiring an excellent organization, one that is operated by the premier management team in the transportation finance industry led by Dan Clark," David Casper, president and CEO, BMO Harris Bank said. "I look forward to working with them to continue to grow the business."