First National Financial Corporation has agreed to be acquired by an acquisition vehicle controlled by Birch Hill Equity Partners and Brookfield Asset Management for approximately $2.9 billion, or $48.00 per share in cash.
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. Birch Hill and Brookfield will collectively hold about 62%.
The acquisition price represents a premium of 15.2% and 22.8% over the 30- and 90-trading day volume-weighted average share prices, respectively. The transaction is expected to close in Q4 2025, pending approvals. Jason Ellis will continue as CEO.
KEY QUOTE:
“This transaction represents the start of an exciting new chapter for First National. Birch Hill and Brookfield bring significant expertise in the Canadian financial services industry, and we are excited to partner with them to grow our platform, drive innovation, and deliver for our customers, employees and institutional partners.”
Jason Ellis, CEO of First National
