BMO Financial Group and its wholly-owned Chicago-based subsidiary BMO Harris Bank N.A. announced the completion of the acquisition of General Electric Capital Corporation’s Transportation Finance business. According to the company, the acquisition enhances BMO’s commercial banking franchise with the addition of North America’s largest financier to the truck and trailer segment.
“We’re welcoming the premier Transportation Finance business in the industry into BMO Financial Group,” noted David Casper, president and CEO of BMO Harris Bank, in a statement. “The trucking industry is vital to the North American economy, and we intend to grow the business, building on the team’s 40-year track record of providing industry expertise to its customers.”
Based in Irving, TX, the newly named BMO Transportation Finance business services the entire supply chain and operates out of 11 locations in the U.S. and four in Canada, with more than 600 employees. BMO Transportation Finance said it will continue to operate under the leadership of Dan Clark –appointed head of BMO Transportation Finance – and his management team.
“We continue to look at transportation as a core market within the North American economy,” Clark told Fleet Owner. “Almost every aspect of the economy is touched in some way by transportation.”
He also noted that being able to tap the unit’s 50,000 customers, including 1,400 dealerships, for “business intelligence” regarding trucking trends adds to the value of the former GE division’s portfolio and will allow it to extend its reach into “tighter niches” within the commercial equipment market.
Clark emphasized that trucking is starting to come off “peak years” for truck and trailer sales and is entering what he called a more “normal” period as fleets finish off replacing older equipment.
“Sales still look very good heading into next year,” he stressed. “But this is a cyclic industry. We had terrible truck sales years in 2009 and 2010, followed by great years in 2014 and 2015. Now we’re going to return to more normal levels.”
Clark added that his customers “have already told us that they are looking forward to having access to BMO’s full array of commercial services” and looks forward to “continuing to provide them with the same level of exceptional customer service they have come to expect.”