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3mo ago

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.

Stephen Smith, President and CEO of First National Financial Corp. addresses shareholders at the company's annual general meeting in Toronto on Monday, May 5, 2014. THE CANADIAN PRESS/Nathan Denette
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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.