Equitable Group buys Canadian equipment leasing specialist

Equitable said this transaction furthers its goal of broadening its reach, with diversification into adjacent markets that complement its other secured lending businesses and broker-led distribution model.

Andrew Moor, president and chief executive officer, Equitable Group, said: “We are delighted that the team at Bennington has chosen to join with us to bring a new level of service to customers in Canada’s multi-billion-dollar equipment finance market.

“As Canada’s challenger bank, Equitable is strategically committed to growing and diversifying our secured lending businesses in attractive markets where we can establish distinct competitive advantages.

Equipment finance is one of those markets. With its large, independent distribution network and proven underwriting, servicing and recovery processes, Bennington provides a unique competitive platform to fulfill our ambitions on a profitable, risk-managed basis.”

The acquisition is subject to customary closing conditions and is expected to be finalized on January 1, 2019.

Equitable expects that its funding capabilities will reduce Bennington’s cost of funds by over 100 basis points and will deliver material interest expense savings. This funding access will enable Bennington to increase its participation in high-quality credit segments, grow its equipment financing portfolio beyond what it could support with its current funding facilities, and lend on larger value assets.

Larry Mlynowski, Bennington’s founder and CEO, said: “Our decision to join Equitable is driven by the desire to increase the scale of financial solutions we can offer customers and our broker partners to continue our belief that the best is yet to come.

“Beyond ready access to cost-effective funding, we are culturally aligned with Equitable’s passion for service, commitment to independent distribution and their Challenger Bank philosophy. This business combination will enable us to continue our vision of being an innovative leader in Canada’s leasing industry.”