Private equity firm Birch Hill Equity Partners and Brookfield Asset Management have agreed to acquire First National Financial in a deal that values the Canadian mortgage lender at CAD2.9bn ($2.12bn), according to a company announcement on Sunday.
Under the terms of the agreement, Birch Hill and Brookfield will purchase First National’s shares at CAD48 per share in cash. Founders Stephen Smith and Moray Tawse will each sell two-thirds of their holdings as part of the transaction
Despite the change in ownership, CEO Jason Ellis is expected to remain in his role, with the current management team continuing to lead the business post-acquisition.
First National, which oversees more than CAD155bn in mortgages under administration, is one of Canada’s largest non-bank mortgage originators and underwriters.
The deal marks a major move by Birch Hill and Brookfield into Canada’s financial services space, as they look to capitalise on long-term demand for non-bank lending platforms.
