Acquisition of Walmart Canada Bank closes as new name is revealed
The sale of Walmart Canada Bank has been completed and the new owners have provided some details of the path ahead.
The financial services provider has been acquired by a partnership of Stephen Smith and affiliates of Centerbridge Partners, L.P. and will be rebranded as Duo Bank.
Under a new agreement, Duo Bank will continue to operate existing financial services products – and develop new ones – across Walmart Canada’s footprint.
"We are encouraged by the prospects ahead for the Bank and look forward to continuing to work together with the talented team there to help provide affordable financial products for our customers," said Lee Tappenden, president and CEO, Walmart Canada.
Trudy Fahie, Chief Executive Officer of the Bank says it’s an exciting time for the team and the bank’s customers.
"We look forward to working together with Stephen and the Centerbridge team, who bring deep financial services expertise, as we execute our long-term growth strategy for the Bank while continuing to stay true to our mission of providing value-driven financial products that are clear and simple."
The new owners
Stephen Smith brings a wealth of financial services experience to the Bank and was listed in Forbes latest billionaire rankings.
He is co-founder, chair, and CEO of Canada’s largest non-bank mortgage lender First National Financial Corporation; chair of Canada Guaranty Mortgage Insurance Company, which he owns in partnership with Ontario Teachers Pension Plan; and the largest shareholder in alternative lender Equitable Bank.
"[Walmart Canada] Bank has a strong track record of achieving results and I look forward to growing the business as the Bank continues to work with Walmart in providing value for Canadians, through affordable financial products and services," said Smith.
Centerbridge is a private investment management firm and as of December 2018 has approximately $28 billion in capital under management with offices in New York and London.
It has a history of investing in banks and other FIs.
"The Bank has built an impressive platform focused on delivering excellent customer service and value. We are excited to be partnering with Trudy and management to continue this mission and to support the Bank's next phase of growth and partnership with Walmart Canada," said Miriam Tawil, Managing Director at Centerbridge.
