First National Financial Corp. Acquisition by Birch Hill and Brookfield

In a significant development in the Canadian financial sector, First National Financial Corporation, a prominent mortgage lender based in Toronto, has agreed to be acquired by Birch Hill Equity Partners and Brookfield Asset Management in a CAD 2.9 billion deal. This acquisition marks a major move in the Thrifts & Mortgage Finance industry, with the transaction being finalized through a newly formed acquisition vehicle, Regal Bidco Inc., controlled by the private equity funds managed by Birch Hill and Brookfield.

The acquisition agreement was announced on July 27, 2025, and has been widely reported by various financial news outlets, including BNN Bloomberg, Yahoo Finance, and Nasdaq. The deal values First National Financial at CAD 2.9 billion, reflecting its strong market position and robust financial performance. As of July 24, 2025, the company’s close price was CAD 42.48, with a market capitalization of CAD 2.58 billion.

First National Financial specializes in originating, underwriting, and servicing single-family and multi-unit residential and commercial mortgages across Canada. The company has maintained a consistent earnings per share (EPS) of 0.890 CAD, as projected by analysts for the quarter ending June 30, 2025, matching the EPS from the same period in the previous year.

Existing shareholders Stephen Smith and Moray Tawse will retain minority ownership in the company post-acquisition, ensuring continuity and stability. This strategic acquisition by Birch Hill and Brookfield is expected to enhance their portfolio in the mortgage finance sector, although it has led to a slight dip in Brookfield Asset Management’s stock price, as noted by TipRanks.

The acquisition is part of a broader trend of mergers and acquisitions in the financial sector, with significant implications for market dynamics and competitive positioning. As the deal progresses, stakeholders will be closely monitoring its impact on First National Financial’s operations and its integration into the acquiring entities’ broader business strategies.