All Trans and PACE to join forces
March 10, 2016 – The Board of Directors of All Trans Financial Services Credit Union Limited and PACE Savings and Credit Union Limited are pleased to announce that they have signed a Letter of Intent to bring the two companies together by way of an asset purchase agreement. Moving forward, the merged company will operate under the PACE brand, but with local recognition for the All Trans brand and personality.
All Trans CEO Mike Alexander commented “We are delighted to have the opportunity to join forces with PACE. They have a great reputation in the credit union industry and we believe that our members will benefit from the wide range of products and services offered, as well as the extensive branch network. We look forward to working with PACE to continue providing the excellent financial services that our members deserve.”
When the transaction is completed, PACE will operate in 17 locations throughout Ontario, employ 164 staff, and serve over 38,000 members who hold $796 million in assets under administration.
“We are very excited at the opportunity to bring All-Trans and their unique products and services to PACE. All Trans CEO Mike Alexander and his staff will bring a wealth of experience and expertise to the PACE family. Our board and staff look forward to a healthy and successful partnership” said PACE CEO Phillip Smith.
Before finalizing the arrangement, the credit unions will undertake due diligence and seek regulator consent. The transaction will also require the approval of the All Trans membership.
About All Trans Financial Services Credit Union Limited
Founded in 1939, All Trans services their 6,500 members in London and Toronto through a network of three branches, two mobile bankers and an on line member portal. Their sponsoring companies include the Toronto Transit Commission, London Transit Commission, Air Canada, CN Rail, CP Rail, Greyhound Bus Lines and Via Rail. Members of the Plumbers and Steam fitters union plus the Glassworkers union are eligible for membership.
About PACE Savings and Credit Union Ltd.
PACE Credit Union’s Ontario roots trace back over 60 years including the membership of Farmunited Co-op, the first credit union incorporated under the new Credit Union Act of 1940. Over the decades, PACE has grown, meeting their members’ and community’s financial needs. Headquartered in Vaughan, Ontario, PACE serves its 32,000 members holding over $758 million in assets under administration through 14 locations. To find out more about cooperative banking, visit pacecu.ca, follow @PACECU on Twitter, or find us on Facebook.
MERGER F A Q s
Why is All Trans merging with another credit union?
The competitive nature of the financial services business means that we need to price our services at a level that is a good deal for our members. Again, this is now only possible through large business volumes at big financial institutions that enable lower loan rates and prices and advertising to raise our members’ awareness of various services and options, which will be help them meet their financial objectives.
Which credit union are we merging with?
Why was PACE selected to be our merger partner?
What services does PACE Savings and Credit Union have to offer?
When will the merger actually happen and how?
The merger agreement will be submitted to the regulatory agency (the Deposit Insurance Corporation of Ontario or DICO) for approval, along with a business plan of how the two credit unions will combine their assets and resources, and grow and develop in the future.
Once DICO has reviewed the submission to ensure that the agreement and business plan are sound, it will issue a formal approval letter for the merger. This is generally expected to take about two weeks.
The last step is the approval of the members, which is where you come in. We will schedule a special members’ meeting for the sole purpose for approving the merger. At this time, we expect this meeting to be held toward the end of April or early in May.
We will provide you periodic updates on the progress of the merger through special notifications or bulletins and on this website. We will send out an official notification and invitation to attend the special members’ meeting.
Once the members have approved the merger, the two organizations will work diligently to complete the integration of All Trans with PACE. We expect the entire process to be complete by the end of 2016
Will there be any disruption to the services I currently get from All Trans as the merger becomes effective?
You will be notified well in advance if there is a disruption that may happen due to system changes that are necessary to improve service quality. Please rest assured that we have all the essential expertise and knowledge to execute a merger that will be beneficial for both organizations.
What will change for me as an All Trans member? Will the current office close?
You may notice a few changes in advertising and signage in our branches over the course of time. The current proposal is to continue with All Trans as a division of PACE Savings and Credit Union. The All Trans services which you are familiar with, such as Christmas and Vacation loans, will continue, while more services are added from PACE. This agreed-upon approach to the merger ensures that it will be a win-win proposition for both All Trans and PACE members!
Please keep checking this page and our website for further updates and information. We value your business and look forward to your continued membership in a larger organization that will offer you much more!
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