First National Financial to be Acquired by Birch Hill Equity Partners and Brookfield in C$2.9 Bln Deal.

First National Financial Corp. has agreed to be acquired by Birch Hill Equity Partners and Brookfield Asset Management for C$2.9 billion. The deal implies a C$48.00 per share price, with the company's founders Stephen Smith and Moray Tawse selling two-thirds of their shares and maintaining a 19% interest in the company after the acquisition. The transaction is expected to close in Q4 2025, subject to regulatory approvals and customary closing conditions.

First National Financial Corp. (FN) has agreed to be acquired by private equity firm Birch Hill Equity Partners and asset manager Brookfield Asset Management (BAM) for C$2.9 billion. The deal, announced on July 27, 2025, values the company's equity at C$48 per share, with the company's founders Stephen Smith and Moray Tawse selling two-thirds of their shares [1][2].

The acquisition implies a premium of approximately 15.2% and 22.8% to the 30 and 90-trading day volume weighted average trading price, respectively, as of July 25, 2025, and is expected to close in the fourth quarter of 2025, subject to obtaining the required shareholder, court, and regulatory approvals and the satisfaction of other customary closing conditions [1][2].

Smith and Tawse are expected to maintain a 19% interest in the company after the acquisition. Jason Ellis, the CEO of First National, is likely to remain in his position, with the current leadership team also expected to stay in place following the completion of the transaction [1][2].

First National, with more than $155 billion in mortgages under administration, is one of Canada's largest non-bank mortgage originators and underwriters. The acquisition is part of a strategic review process conducted by the company, which involved a competitive process in which multiple acquisition proposals were received and reviewed by an independent committee [1][2].

The acquisition is expected to provide shareholders with immediate liquidity and represents a total shareholder return of approximately 2,149% on the company's initial public offering share price, including historical dividend payments [1][2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TP03K:0-birch-hill-brookfield-to-acquire-canada-s-first-national-financial-for-c-2-9-billion/
[2] https://www.newswire.ca/news-releases/first-national-financial-corporation-agrees-to-be-acquired-by-birch-hill-equity-partners-and-brookfield-with-existing-shareholders-stephen-smith-and-moray-tawse-maintaining-minority-ownership-888046675.html