Terms of the deal have not been disclosed, but the acquired business has around C$11.5bn ($8.7bn) worth net earning assets, as of June this year, BMO said.
GE said the transaction will contribute approximately $700m of capital to the dividends expected to be paid by it.
Based in Irving, Texas, GE Capital’s transportation finance business provides financial services to the commercial truck and trailer segment in North America.
Its clients span throughout the supply chain of the transportation industry, from original equipment manufacturers and dealers to end-users.
With around 600 employees, the business operates through 11 locations in the US and four in Canada.
BMO Financial Group 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."
Subject to antitrust clearance and certain other customary closing conditions, the deal is expected to be completed by the end of first quarter 2016.
In August, GE unveiled its decision to divest its US healthcare unit to credit card lender Capital One Financial, for around $9bn, as part of the company’s strategy to move out of its finance business.
GE Capital chairman and CEO Keith Sherin said: "We continue to execute on our asset sales and are on track to reduce our ending net investment (ENI) by $100bn by the end of 2015 and expect to be substantially done with our exit strategy by the end of 2016."
In March, a consortium of Värde Partners, KKR and Germany’s Deutsche Bank agreed to acquire GE Capital’s consumer lending business in Australia and New Zealand for $6.2bn.
With the latest agreement with BMO, GE has sold $85bn of its financial assets this year.
Image: BMO Bank of Montreal head office in Montreal, Canada. Photo: courtesy of Dickbauch.
