Stonepeak acquires BMO Transportation and Vendor Finance

Stonepeak, a notable player in alternative investments focused on infrastructure and real assets, has entered into an agreement to acquire BMO Financial Group's Transportation and Vendor Finance businesses. The terms of the transaction, including the purchase price, are undisclosed, but BMO will retain a 19.9% minority stake. This acquisition encompasses a major footprint in North America's transportation finance sector, encompassing operations in the U.S. and Canada with a workforce of over 700.

BMO Transportation and Vendor Finance, headquartered in Irving, Texas, is a key financier for the commercial truck and trailer segment in North America, dealing in customized financing across various transportation assets. Upon completion of the transaction, which is anticipated in the fourth quarter of 2026 pending regulatory approval, Gary Kempinski will continue to lead the business. The structure also involves asset-based financing arranged by PGIM and Bank of America as the Lead Financing Arranger.

The acquisition aligns with Stonepeak's strategy to expand in the transportation and logistics infrastructure sector, where it has historically made significant investments. The firm's portfolio includes ventures such as Textainer, known for its extensive container fleet, and Air Transport Services Group, a leader in cargo aircraft leasing. Stonepeak's Senior Managing Director, Will Schleier, expressed intentions to bolster the business through further investment, maintaining its established culture and reputation.

For BMO Financial Group, this arrangement offers a strategic partnership while retaining partial ownership, potentially allowing it to leverage Stonepeak's expertise in asset leasing and infrastructure. Gary Kempinski highlighted Stonepeak's credentials in North American transportation and logistics infrastructure, suggesting that the business is well-positioned for future success with this new ownership structure.

Looking ahead, the transaction is subject to customary closing conditions and regulatory approvals. Stonepeak aims to integrate BMO Transportation and Vendor Finance seamlessly into its asset-heavy investment portfolio, potentially setting the stage for further growth within the transportation finance domain in North America.