Fairstone Financial has agreed to acquire EdenPark, a Toronto-based provider of automobile financing to near-prime consumers in Canada. No financial terms were disclosed. Montreal’s Fairstone is an affiliate of Duo Bank of Canada, a Toronto-based financial services provider backed by Stephen Smith, Centerbridge Partners and Ontario Teachers’ Pension Plan.
MONTREAL, April 6, 2022 /CNW Telbec/ – Fairstone Financial Inc. (“Fairstone” or “Company”), a leading Canadian provider of responsible lending solutions, announced today that it has entered into an agreement to acquire all of the issued and outstanding shares of EdenPark Inc. (“EdenPark”), an Ontario-based company offering automobile financing to near-prime consumers across Canada.
“This transaction is perfectly aligned with our growth strategy and value creation plan, and will firmly establish our market position as a major player in the automobile financing industry while adding a growing and well-performing platform, supported by a sizeable dealer network,” said Scott Wood, President and CEO at Fairstone. “As we continue to significantly expand our presence in the automobile financing market, we are very pleased to welcome Mark Eleoff and the highly experienced team of EdenPark.”
“We are very excited to continue building our highly successful business under the Fairstone umbrella,” said Mark Eleoff, CEO of EdenPark. “With our combined strengths, expertise, and extensive experience, we are now much more competitive and increasingly well-positioned to meet the growing demand for the services we offer.”
With finance receivables of approx. $350 million and an established, nationwide network of more than 4000 pre-qualified automobile dealers, EdenPark is the largest, independent automobile finance company with a focus on the near-prime customer segment in Canada. Building on its track record of consistent profitable growth since inception, EdenPark will continue to execute on its strategic growth plan within the broader Fairstone organization.
RBC Capital Markets acted as financial advisor and Stikeman Elliott LLP as legal advisor to EdenPark. Torys LLP acted as legal advisor to Fairstone. The acquisition is subject to customary closing conditions, including regulatory approval.
About Fairstone Financial Inc.
Fairstone is a leading Canadian provider of responsible lending solutions, with close to a 100-year history. Fairstone is an operating subsidiary of Duo Bank of Canada and, combined, have over 1.5 million customers and $5 billion in assets on a consolidated basis. With nearly 1,500 employees nationally, the combined entity provides services through two business lines. The Direct Lending business offers near-prime customers unsecured personal loans, secured personal loans, mortgages and optional ancillary products such as creditor insurance to consumers online and in over 240 branches from coast to coast. The Indirect Lending business encompasses credit cards, rewards programs, retail point-of-sale (“POS”) financing through merchants, automobile and power sports through dealerships. Fairstone has again been named one of Montreal’s top employers for 2022. More at: www.fairstone.ca and www.duobank.com.
About EdenPark Inc.
EdenPark is an Ontario-based vehicle financing provider in Canada, servicing more than 4000 dealers and tens-of-thousands of consumers, coast to coast, since 2012. EdenPark has been recognized, year over year, as one of Canada’s fastest growing companies. The EdenPark team is comprised of 120 professionals with decades of financial industry experience focused on building long-term trusted relationships with automobile dealers and consumers across Canada. More at: www.edenparkcanada.com.