He is about to shoot it to take back a specimen to England when another bear playfully takes his gun away. He learns that this family of bears is intelligent, can learn English and that they have a deep appetite for Marmalade. He therefore doesn't have the heart to shoot them now and instead befriends them.
He names them Lucy and Pastuzo. As he departs, he throws his hat to Pastuzo and tells the bears that they are always welcome should they wish to go to London. When Montgomery goes back to the Geographers Guild, they shun him for not bringing back a dead specimen of the bears and refusing to reveal their location, and he lives the rest of his life running a small petting zoo.
He is also the father of Millicent Clyde, the main antagonist of the first movie who is bitter towards her father for throwing away his chance of being rich and famous and decides to seize the opportunity herself by attempting to kill Lucy and Pastuzo's nephew Paddington.