TD Bank to acquire Wells Fargo’s Canadian Direct Equipment Finance business
By Pavithra R
The Toronto-Dominion Bank (TD Bank) has announced entering into a definitive agreement to acquire Wells Fargo‘s Canadian Direct Equipment Finance business. The acquisition is expected to close in the first half of 2021, subject to regulatory approvals and certain other conditions.
The acquisition intends to add scale and capabilities to TD’s existing Canadian Equipment Financing business and expand its presence in core markets. Wells Fargo’s Canadian Direct Equipment Finance’s direct origination model will allow TD Bank to better serve a more diverse set of business customers in need of competitive equipment loans, leases, and customized financing services.
“In today’s challenging operating environment, businesses are looking to their bankers to help keep their fleets current, deliver new construction equipment to job sites, and support manufacturing businesses with timely customized financing and leasing solutions that help drive their competitiveness. We are excited to welcome Wells Fargo’s Canadian Direct Equipment Finance team of highly skilled and experienced industry professionals to TD and leverage their deep expertise in equipment leasing and finance for the benefit of our highly-valued customers nationwide,” said Darren Cooke, Vice President, TD Equipment Finance, Canadian Business Banking, TD Bank Group.
Headquartered in Mississauga, Wells Fargo’s Canadian Direct Equipment Finance business has approximately C$1.5 bn in assets and over 120 employees. The firm holds a 25-year operating history, which includes the acquisition by Wells Fargo of GE Capital’s Canadian Equipment Finance business in 2016 and provides loans and leases covering a complete range of commercial equipment for businesses across Canada.
“We have enjoyed a relationship with TD for many years, as Canada is an important market for Wells Fargo. This group of talented Canada-based employees and their equipment finance customers will benefit from TD’s strong franchise and allow us to focus our efforts on our U.S. equipment finance capabilities while continuing to serve our asset-based lending and distribution finance customers in Canada. We anticipate a smooth transition, and we’re confident that the group’s strong focus on customers, deep relationships and industry expertise will complement TD’s existing business,” said David Marks, Head of Wells Fargo Commercial Capital.
“This acquisition will be welcome news for both our existing and potential new customers. It expands our competitive position in Canada’s Equipment Finance industry, builds on our strong track record of legendary customer service, and puts us in a unique position to offer an increased range of in-demand products and services,” says David Pinsonneault, Executive Vice President, Commercial and Industrial, Canadian Business Banking, TD Bank Group.
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group. It is the sixth-largest bank in North America by branches and serves over 26 mn customers in 3 key businesses operating in a number of locations in financial centres around the globe.
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