Toronto-Dominion Bank (TD Bank) has reached an agreement to buy US retailer Nordstrom’s existing US Visa and private label consumer credit card portfolio, which totals about $2.2bn in receivables.
The bank has also signed a long-term agreement to become the exclusive US issuer of Nordstrom-branded Visa and private label consumer credit cards to Nordstrom customers.
Subject to regulatory approvals and other customary conditions, the deal is scheduled to close in the second half of this year.
TD Bank said it will fund the transaction with available resources.
Terms of the transaction, which aligns with Nordstrom’s strategy of improving the customer experience and capital efficiency, were not disclosed.
Nordstrom will continue to perform account servicing functions, and fund and manage its loyalty program, debit cards and employee accounts. It will also receive a substantial portion of net revenue generated by the credit card accounts.
TD Bank Group group president and CEO Bharat Masrani said: "This agreement with Nordstrom, achieved through great partnership and collaboration, continues the success of our growing North American credit card business."
Nordstrom co-president Blake Nordstrom said: "When we began this process a year ago, our number one goal was to continue to take care of our customers directly. We are pleased to meet this goal through our collaboration with TD, a premiere global financial institution and experienced credit card partner."