Equitable Bank has agreed to sell equipment-finance company Bennington Financial Corp. to Desjardins Group at a price about 8% below its lease receivables, a move EQB says will refocus resources on growth.
EQB announced the agreement Thursday. It covers all of Bennington’s shares. EQB Inc. (TSX: EQB), Equitable Bank’s parent, said it did not disclose a dollar purchase price.
Bennington provides commercial equipment leasing and financing through a broker network. Its lease receivables totaled approximately $1.1 billion as of July 31, 2026; EQB did not specify the currency. The subsidiary’s earnings contribution for the 12 months ended that date was not material, EQB said.
EQB expects its fourth-quarter 2026 results to include an after-tax charge related to the sale, which it plans to classify as an adjusting item. The amount has not been disclosed. EQB also expects Equitable Bank’s common equity Tier 1 (CET1) capital ratio to remain broadly unchanged after closing.
EQB linked the sale to its growth focus after completing its purchase of PC Financial from Loblaw on July 1, 2026. The acquisition also made EQB the exclusive financial services partner for Loblaw’s PC Optimum loyalty program. EQB President and CEO Chadwick Westlake said the sale follows other business and product exits over the past year, though the announcement did not name them. He said the transaction would help EQB “further concentrate” its capital and resources on growth priorities.
Desjardins Group President and CEO Denis Dubois said Bennington’s equipment-leasing and financing capabilities would broaden Desjardins’ business-financing offering. He called the company a strategic fit and said the acquisition would support the group’s plans to expand across Canada.
The transaction is subject to customary closing conditions. EQB expects it to close in the first half of 2027.
