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Birch Hill and Brookfield to Buy First National Financial for C$2.9 Billion

Offering C$48 per share, the C$2.9 billion acquisition now awaits shareholder, court and regulatory approval for closing in the fourth quarter of 2025.

Overview

  • Regal Bidco, an acquisition vehicle backed by Birch Hill Equity Partners and Brookfield Asset Management, will acquire all outstanding common shares of First National Financial.
  • The cash offer of C$48 per share represents a 15.2 percent premium over the 30-day volume-weighted average price on the Toronto Stock Exchange.
  • Founders Stephen Smith and Moray Tawse will each sell two-thirds of their stakes and retain an indirect interest of about 19 percent post-closing.
  • First National CEO Jason Ellis will stay on to lead the company and the management team will remain intact after the transaction.
  • The deal is expected to close in the fourth quarter of 2025, pending shareholder approval in September and subsequent court and regulatory clearance.