Financial institution First National announced a $2.9 billion acquisition led by Birch Hill Equity Partners and Brookfield Asset Management.
In a significant move, First National Financial Corporation has been agreed to be acquired by an acquisition vehicle controlled by Birch Hill Equity Partners and Brookfield Asset Management for approximately $2.9 billion. The acquisition price represents a premium of 15.2% over the 30-trading day volume-weighted average share price.
Jason Ellis, CEO of First National, has expressed his excitement about the acquisition, referring to it as the start of a new chapter. Ellis emphasized that delivering for customers, employees, and institutional partners will remain a top priority post-acquisition. Innovation is also highlighted as a key focus area for First National moving forward.
The acquisition price is $48.00 per share in cash. Birch Hill and Brookfield will collectively hold about 62% of First National post-acquisition. This purchase reflects their strong presence and influence in the Canadian financial services sector, particularly in mortgage lending.
Founders Stephen Smith and Moray Tawse will sell two-thirds of their shares for cash and exchange the remaining third for an indirect 19% ownership each in First National post-acquisition. Ellis will continue as CEO of First National post-acquisition.
Birch Hill Equity Partners, a Canadian mid-market private equity firm based in Toronto, managing over C$6 billion in capital, and Brookfield Asset Management, a major global investor and asset manager with over $1 trillion in assets under management, bring significant expertise to the table.
Birch Hill has expertise in deploying data analytics to optimize underwriting and servicing operations in the financial sector and owns portfolio companies such as Park Lawn Corp., Rexall pharmacies, and Harbour Air Seaplanes. Founded in 1994, Birch Hill focuses on operational transformation and capital-efficient growth.
Brookfield, on the other hand, specializes in long-term value creation through infrastructure-like returns and has extensive experience in private equity and asset management globally, including the Canadian financial services industry.
Together, Birch Hill and Brookfield aim to enhance First National's profitability through operational improvements, expansion into alternative lending, and leveraging cross-border opportunities, particularly in the U.S. market. The transaction is expected to close in Q4 2025, pending approvals.
Investing in First National Financial Corporation has been boosted by Birch Hill Equity Partners and Brookfield Asset Management, both renowned in the business sector for their expertise in finance and investing. With the acquisition, Birch Hill, a Canadian private equity firm, plans to optimize First National's underwriting and servicing operations, while Brookfield, a global investor, aims to create long-term value through operational improvements and expansion into alternative lending markets, particularly in the U.S. market.
