Equitable Bank has entered into a definitive agreement to sell commercial equipment leasing and financing company Bennington Financial to Desjardins Group as EQB shifts capital toward its core strategic growth businesses.
Desjardins will acquire 100% of Bennington’s shares.
As of July 31, 2026, Bennington’s portfolio contained approximately $1.1 billion in lease receivables.
The purchase price will be equivalent to an approximately 8% discount to those lease receivables.
Bennington specializes in commercial equipment leasing and financing and distributes its products through a broker network across Canada.
Equitable Bank said the divestiture will simplify its commercial portfolio and allow it to concentrate capital and resources on businesses offering stronger alignment with EQB’s strategic priorities.
The transaction follows other portfolio changes by EQB and comes after its PC Financial transaction.
Desjardins said Bennington’s equipment finance expertise complements its existing business financing capabilities and provides an additional platform for growth across Canada.
For accounting purposes, EQB will classify Bennington as held for sale and expects to record a net after-tax charge during the fourth quarter of 2026.
The transaction is expected to have a relatively neutral effect on Equitable Bank’s common equity Tier 1 capital ratio after closing.
Completion is expected during the first half of 2027, subject to customary closing conditions.
National Bank Capital Markets is acting as financial advisor to EQB, while McCarthy Tétrault is providing legal counsel.
Desjardins Capital Markets is serving as financial advisor to Desjardins, with Norton Rose Fulbright Canada providing legal advice.
EQB has approximately $151 billion in combined assets under management and administration and serves more than four million customers.
KEY QUOTES:
“This transaction allows us to further concentrate our capital and resources on our core growth priorities, particularly following our PC Financial transaction.”
Chadwick Westlake, President And CEO Of EQB
“Bennington’s specialized expertise in commercial equipment leasing and financing makes it a strong strategic fit for Desjardins.”
Denis Dubois, President And CEO Of Desjardins Group
