The 100-year old non-bank lender Fairstone Financial Holdings Inc. is to be acquired by Toronto-based financial services solutions firm Duo Bank.
The deal includes all operating subsidiaries, from an investor group led by J.C. Flowers & Co. LLC and Värde Partners, Inc. Headquartered in Montreal.
“We’re very pleased to be joining forces with a Canadian financial services institution that shares our customer-focused commitment and community-driven approach to helping everyday Canadians access financial solutions that fit their needs,” said Scott Wood, President and Chief Executive Officer of Fairstone. “We look forward to enhancing the complementary growth potential of both businesses.”
Fairstone has a branch and online direct lending business which includes mortgages but also operates financing solutions through retailers and auto dealers. Its 1,400 employees will be included as part of the combined company.
“Duo Bank’s mission is to provide value-driven financial products that are clear and simple, enabling Canadians to focus on what matters to them. Fairstone’s close to 100-year history of providing near-prime borrowers with access to responsible credit is perfectly aligned with this mission,” said Stephen Smith, Chairman of Duo Bank.
Growth and expansion
Duo Bank is privately held by an investor group led by funds managed by affiliates of Stephen Smith and Centerbridge Partners, L.P.
“Throughout Fairstone’s growth and expansion, it has maintained a laser focus on the customer experience as well as a strong compliance and controls environment from its former legacy under bank ownership. We are excited to partner with the Fairstone team through Duo Bank to support their combined next phase of growth,” said Miriam Tawil, Managing Director at Centerbridge.
The transaction is expected to close in the second quarter of 2020.
Steve Randall has more than three decades of media experience encompassing online, newspapers, magazines, radio, and podcasts. He focuses on insights and news for professionals in finance, real estate, and legal services. Steve writes for multiple Key Media titles in Canada, United States, Australia, and New Zealand.
