Stonepeak to Acquire BMO Transportation and Vendor Finance

Stonepeak, an alternative investment firm specializing in infrastructure and real assets, and BMO Financial Group, reached an agreement whereby Stonepeak will acquire BMO’s transportation finance and vendor finance businesses. As part of the transaction, BMO will reinvest a 19.9% minority interest in the business.

Upon closing of the transaction, the business will continue to be led by Gary Kempinski, head of transportation finance and vendor finance at BMO.

“Building on decades of sector expertise, BMO Transportation and Vendor Finance has established itself as one of North America’s premier transportation financing platforms,” Will Schleier, senior managing director at Stonepeak, said. “We are excited to work closely with BMO and the outstanding leadership team in place to invest further in the business, build on its strong performance, and grow its commercial customer base while preserving the culture, reputation and relationships that have made the business so successful to date.”

Kempinski added, “We could not have envisioned a better partner to lead BMO Transportation and Vendor Finance into its next chapter. Stonepeak brings deep experience, operating expertise and relationships in North American transportation and logistics infrastructure, and particularly in asset leasing businesses. With their support and strategic partnership, we are positioned incredibly well for sustained success.”

The transaction includes asset-based financing from PGIM, the global asset management business of Prudential Financial and bank financing with Bank of America as lead financing arranger.

Skadden, Arps, Slate, Meagher & Flom and Blake, Cassels & Graydon served as legal counsel to Stonepeak. BMO Capital Markets and BofA Securities served as financial advisor and Sullivan & Cromwell and Osler, Hoskin & Harcourt served as legal counsel to BMO.

The transaction is expected to close in Q4/26, subject to customary conditions, including regulatory approvals.