The transaction is expected to close in the first half of 2022
Ontario Teachers’ Pension Plan Board has announced that it will be acquiring HomeQ Corporation, the parent company of reverse mortgage industry leader HomeEquity Bank, from Birch Hill Equity Partners Management Inc.
The acquisition was advised by TD Securities Inc. as financial adviser, with Blake, Cassels & Graydon, LLP as legal adviser. Torys LLP advised HomeQ.
Ontario Teachers’ said that HomeEquity Bank is a good fit for its growing financial services portfolio.
“We believe the company has a high-quality management team, a solid value proposition for consumers and room to grow their business given Canada’s aging population as well as the increased attractiveness of staying in your own home as you age,” said Karen Frank, senior managing director of equities at Ontario Teachers’. “Ontario Teachers’ has a long history of investing in successful financial services businesses in Canada and internationally and we look forward to supporting HomeEquity Bank during its next stage of growth.”
Steven Ranson, president and CEO of HomeEquity Bank, said that Ontario Teachers’ will bring value to its mission of serving Canada’s retirees.
“A long-term capital profile, track record of delivering retirement solutions, and our shared vision of making a positive impact on the lives of retired Canadians makes Ontario Teachers’ a natural partner for us,” Ranson said. “I want to thank Birch Hill for its unwavering support for HomeEquity Bank over this past decade. Our partnership provided a reliable source of capital so that HomeEquity Bank could help more Canadians access the equity they built in their homes and live in the place they love.”
The completion of the acquisition is contingent upon receipt of required regulatory approvals, which Ontario Teachers’, HomeQ, and HomeEquity expect to occur in early 2022.