The Bank of Nova Scotia ("Scotiabank") and Meridian Credit Union Limited announced that the two companies have reached an agreement under which Meridian will purchase the business operations and assets of Roynat Lease Finance, a division of Roynat Inc. The sale is subject to regulatory approval and is expected to close in the second quarter of 2016. The transaction is not material to Scotiabank.

"In making the decision to sell Roynat Lease Finance, we considered the best interests of our stakeholders," said Phil Armstrong, President and Head of Roynat Inc. "Roynat acquired this lease finance business in 2008 and has steadily built both the earnings and customer base since that time. However, our Roynat business is focused on lending to mid-market companies to propel their growth and this lease finance business is not core to that offering."

As part of the transaction, Meridian has committed to make offers of employment to Roynat Lease Finance's employees and to provide a seamless experience for current clients.

"Roynat is an important component of our Commercial Banking platform and we remain steadfast in our commitment to build the Roynat brand in Canada," said Gillian Riley, Executive Vice President, Canadian Commercial Banking at Scotiabank. "We are working across our Commercial business to strengthen our footprint, deepen our client support and to invest in technology enhancements that make it easier for customers to do business with us."

Roynat Inc. is a wholly-owned subsidiary of Scotiabank.