Equitable Bank, held by EQB announced Oct. 29 that it has entered into a definitive agreement with Desjardins Group for the sale of Bennington Financial Corp., a provider of commercial equipment leasing and financing.
EQB said the transaction reinforces its focus on high-growth opportunities.
“At EQB, we’re focused on doing more of what we do best and investing where we see the greatest opportunity to win. This transaction allows us to further concentrate our capital and resources on our core growth priorities, particularly following our PC Financial transaction. It also positions Bennington with an owner that is equipped to grow the business to its full potential with expertise in the sector. Consistent with other businesses and product exits over the past year, this move strengthens our ability to create value for customers and shareholders over the long term,” Chadwick Westlake, president and CEO of EQB, said.
Bennington operates in the Canadian equipment leasing industry and relies on a network of brokers. As of July 31, 2026, its aggregate portfolio included approximately $1.1 billion in lease receivables. Contribution to earnings for the trailing 12 months ended July 31, 2026, was not material.
“Bennington’s specialized expertise in commercial equipment leasing and financing makes it a strong strategic fit for Desjardins. This transaction brings capabilities that complement our existing business financing offering and support our growth ambitions across Canada, while providing a strong foundation for Bennington to continue building on its established business, expertise and relationships,” Denis Dubois, president and CEO of Desjardins Group, said.
Under the terms of the agreement, Desjardins will acquire 100% of the shares of Bennington at a price equivalent to a discount of approximately 8% of lease receivables. For accounting purposes, the business will be classified as held for sale, and EQB expects to record a net after-tax charge in the fourth quarter of 2026, which will be treated as an adjusting item. Upon closing, the transaction is expected to be relatively neutral to Equitable Bank’s common equity Tier 1 (CET1) ratio.
The transaction is expected to close in the first half of 2027, subject to customary closing conditions. EQB and Desjardins will work together to ensure a smooth transition.
National Bank Capital Markets is acting as financial advisor and McCarthy Tétrault LLP is acting as legal advisor to EQB. Norton Rose Fulbright Canada LLP is acting as legal advisor to Desjardins, and Desjardins Capital Markets is acting as financial advisor to Desjardins.
