Duo Bank of Canada, a financial services provider, has completed the acquisition of all outstanding shares of Fairstone Financial Holdings, a Montreal-based provider of credit solutions.
Fairstone provides credit solutions for near-prime borrowers with over $3bn in assets on a consolidated basis, while Duo Bank of Canada is supported by Stephen Smith, Centerbridge Partners and Ontario Teachers’ Pension Plan Board.
Duo Bank CEO Trudy Fahie said: “We’re pleased to be partnering with the talented team at Fairstone in pursuit of our complementary and aligned strategic growth objectives, including our mutual, community-driven focus on providing Canadians with access to financial solutions that fit their needs.”
Fairstone president and CEO Scott Wood said: “The closing of this transaction represents an exciting new phase of growth for Fairstone and additional opportunities for our customers, employees and stakeholders.
“We look forward to partnering with Duo Bank, Stephen, Centerbridge and the Ontario Teachers’ teams, as we execute our multi-year growth strategy with a strong customer and community focus driving our financial product offerings.”
The deal includes all of Fairstone’s operations and subsidiaries besides all its approximately 1,400 employees.
Fairstone will continue to operate under its current brand.
Terms of the deal have not been divulged.
RBC Capital Markets and CIBC Capital Markets served as financial advisors and Torys and Freshfields Bruckhaus Deringer US acted as legal counsel to Duo Bank for the transaction.
McMillan served as legal counsel to Stephen Smith, Willkie Farr & Gallagher acted as legal counsel to Centerbridge Partners and Osler, Hoskin & Harcourt served as legal counsel to Ontario Teachers’.
