The Toronto-Dominion Bank (“TD”) (TSX and NYSE: TD) and Wells Fargo & Company (“Wells Fargo”) (NYSE: WFC) today announced a definitive agreement, subject to certain closing conditions, for TD to acquire Wells Fargo’s Canadian Direct Equipment Finance business.
The acquisition of Wells Fargo’s Canadian Direct Equipment Finance business is expected to add scale and capabilities to TD’s existing Canadian Equipment Financing business and expand TD’s 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.
“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,” says Darren Cooke, Vice President, TD Equipment Finance, Canadian Business Banking, TD Bank Group. “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.”
Headquartered in Mississauga, with regional offices across the country, including Montreal and Calgary, 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. With approximately C$1.5 billion in assets and over 120 employees, Wells Fargo’s Canadian Direct Equipment Finance business provides loans and leases covering a full 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,” said David Marks, Head of Wells Fargo Commercial Capital. “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.”
“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.
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.
TD Securities served as financial advisor and Osler, Hoskin & Harcourt LLP served as legal counsel to TD in connection with this transaction. Wells Fargo Securities, LLC served as exclusive financial advisor and McCarthy Tetrault LLP served as legal counsel to Wells Fargo.
