TORONTO – First National Financial Corp. says it has agreed to be sold in a roughly $2.9 billion deal.
The mortgage firm says private equity funds managed by Birch Hill Equity Partners Management Inc. and Brookfield Asset Management are the buyers through a newly-formed acquisition vehicle.
First National Financial says founders Stephen Smith and Moray Tawse will each indirectly maintain about a 19 per cent interest in the company.
It says the purchase price of $48 per share represents a 15.2 per cent premium to the average of the past 30 trading days and is above the 52-week high for the company, though it is below its peak of over $52 per share in 2021.
“Birch Hill and Brookfield bring significant expertise in the Canadian financial services industry, and we are excited to partner with them,” said First National chief executive Jason Ellis in a statement.
Ellis is expected to stay on as chief executive, as is the rest of the leadership team, the company said.
The firm, started in 1988, had about 325,000 residential and commercial mortgage clients as of the end of last year, working out to $153.7 billion in mortgages under administration.
First National Financial says the deal came after a strategic review and that it offers compelling value and liquidity to shareholders.
Founders Smith and Tawse respectively hold about 37.4 per cent and 34 per cent of outstanding shares, of which they will sell about two-thirds to the buyers and exchange the rest into ownership interests.
Birch Hill’s other portfolio companies include Park Lawn Corp. funeral homes, Rexall pharmacies and Harbour Air Seaplanes.
Brookfield Asset Management is a division of Brookfield Corp., a major global investor with over $1 trillion in assets under management.
This report by The Canadian Press was first published July 28, 2025.
Companies in this story: (TSX:FN)
