Smith Financial plans beefed up alternative lender with Home Trust-Fairstone Bank merger
TORONTO — Smith Financial Corp. is merging a pair of its portfolio companies, Fairstone Bank of Canada and Home Trust Co., in a move they say will create the leading alternative lender in Canada.
Smith financial founder and chief executive Stephen Smith says the combination is characterized by a strong cultural fit and complementary strengths.
Fairstone Bank offers credit cards and rewards programs, point-of-sale financing, automobile financing and personal loans, while Home Trust is focused on residential and non-residential mortgages, credit cards and guaranteed investment certificates.
The combined company will have more than two million customers with more than 250 branches.
Under the deal, Smith Financial will own a majority stake in the new company, while Fairstone Bank’s other shareholders, Centerbridge Partners LP, Ontario Teachers’ Pension Plan Board and management, will continue as minority owners.
The deal is subject to customary closing conditions, including regulatory approvals.
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