Toronto-Dominion Bank (TD Bank) announced on Thursday it has signed a definitive agreement to acquire Wells Fargo’s Canadian Direct Equipment Finance business. TD reported that the acquisition of Wells Fargo’s Canadian Direct Equipment Finance business is expected to add scale and capabilities to its existing Canadian Equipment Financing business and expand its presence in core markets.
“Wells Fargo’s Canadian Direct Equipment Finance’s direct origination model is expected to allow TD to better serve a more diverse set of business customers in need of competitive equipment loans, leases, and customized financing services.”
TD Bank further revealed that Wells Fargo’s Canadian Direct Equipment Finance business has a 25-year operating history, which includes the acquisition by Wells Fargo of GE Capital’s Canadian Equipment Finance business in 2016. The business, which has approximately C$1.5 billion in assets and over 120 employees, provides loans and leases covering a full range of commercial equipment for businesses across Canada.
While speaking about the acquisition, David Pinsonneault, Executive Vice President, Commercial and Industrial, Canadian Business Banking, TD Bank Group, stated acquiring the Canadian Direct Equipment Finance business, it will expand TD’s competitive position in the Canadian’ equipment finance industry as well as build on TD’s customer service.
TD’s purchase of Wells Fargo Canadian Direct Equipment Finance business is expected to close in the first half of 2021, subject to receipt of regulatory and Competition Act approvals and clearance, and satisfaction of other customary closing conditions. Terms of the acquisition agreement have not been disclosed at this time.