Luxury department store Nordstrom has agreed to sell its credit card portfolio to Canada’s Toronto-Dominion Bank.
The deal covers Nordstrom’s branded Visa credit card and private label credit card portfolios in the US. The bank will also become Nordstrom’s exclusive consumer credit partner.
Toronto-Dominion Bank is Canada’s second-largest lender by assets, and the deal gives it an increased footprint in the neighbouring US consumer credit marketplace.
In a statement, the two companies said the portfolio included US$2.2 billion in receivables.
In March 2013, Toronto-Dominion Bank bought the $5.7 billion receivables of Target Corp in another deal.
“We found TD to be a strong cultural fit, sharing our customer-focused approach and providing capabilities to help us further enhance the customer experience,” Nordstrom co-president Blake Nordstrom, said in the statement.