Financial company First National Financial undergoing a $2.9 billion acquisition by Birch Hill and Brookfield
In a significant move for the Canadian mortgage market, Birch Hill Equity Partners and Brookfield Asset Management have agreed to acquire First National Financial Corporation for approximately C$2.9 billion. This deal will grant them a majority ownership stake (about 62%) in one of Canada’s largest non-bank mortgage originators and underwriters [1][2][3].
The acquisition follows a thorough strategic review by First National, aimed at advancing the company’s growth and strategic objectives under new majority owners. The founders, Stephen Smith and Moray Tawse, will retain minority stakes, keeping about 19% each by rolling over part of their shares into the purchaser entity. Jason Ellis, CEO of First National, will continue in his role post-acquisition [1][2][3].
The strategic intent behind this transaction includes expanding capital and operational resources. Birch Hill and Brookfield, both experienced in private equity and asset management, bring significant financial strength and expertise to support First National’s continued growth in the competitive mortgage market [1][3]. The long-term partnership with the founders ensures continuity in First National’s business leadership and culture post-transaction [2][3].
The deal will also result in First National’s common shares being delisted from the Toronto Stock Exchange, allowing the company to operate with more flexible capital management under private ownership while continuing to list preferred shares [2]. Additionally, the transaction is expected to enhance First National’s competitive position in the Canadian mortgage finance sector by leveraging Birch Hill’s and Brookfield’s combined investment acumen and industry knowledge [1][3].
Jason Ellis, CEO of First National, expressed excitement about the acquisition, describing it as the start of a new chapter. The acquisition is planned to close in the fourth quarter of 2025, pending standard regulatory, shareholder, and court approvals [1][2][3]. This move reflects strong investor confidence in First National's business model and growth potential.
[1] - BusinessWire
[2] - Financial Post
[3] - Globe and Mail
This transaction is expected to boost First National's competitive position in the Canadian mortgage finance sector by leveraging Birch Hill's and Brookfield's combined investment acumen and industry knowledge in business. The strategic move follows a thorough review by First National, aimed at advancing the company’s growth objectives under new majority owners in finance.
