Duo Bank of Canada, a Toronto, Canada-based financial services provider supported by Stephen Smith, Centerbridge Partners L.P. and Ontario Teachers’ Pension Plan, is to acquire all outstanding shares of Fairstone Financial Holdings Inc., which includes all operating subsidiaries, from an investor group led by J.C. Flowers & Co. LLC and Värde Partners, Inc.
The deal – whose terms were not disclosed – includes all of Fairstone’s operations as well as all the company’s 1,400+ employees. It is expected to close in the second quarter of 2020 and is subject to regulatory approvals and other customary closing conditions.
Led by Scott Wood, President and Chief Executive Officer, and based in Montreal, Fairstone is a non-bank provider of responsible credit solutions for near-prime borrowers with over $3 billion in assets on a consolidated basis. It has two key business lines: lending directly to consumers through its branch network and online platform, and financing consumer retail and vehicle purchases through retailers and automobile dealerships. J.C. Flowers and Värde Partners acquired CitiFinancial Canada from Citi in 2017 and rebranded the company as Fairstone.
Led by Trudy Fahie, Chief Executive Officer, Duo Bank is a Schedule I Canadian Bank that provides credit cards, rewards programs, retail sales financing, deposits and related protection services.