Ontario Teachers’ Pension to Buy Reverse-Mortgage Provider HomeQ
Ontario Teachers’ Pension to Buy Reverse-Mortgage Provider HomeQ
(Bloomberg) -- Ontario Teachers’ Pension Plan Board agreed to acquire reverse-mortgage provider HomeQ Corp. from private equity firm Birch Hill Equity Partners Management Inc. to help build out its financial-services portfolio.
The parties expect the deal to receive the necessary regulatory approvals in the first half of 2022, Toronto-based Ontario Teachers’ said Wednesday in a statement. The purchase price wasn’t disclosed.
The deal would bolster Ontario Teachers’ financial-services holdings, giving it control of Canada’s largest provider of reverse mortgages as the country’s aging population bolsters demand for the financial product. HomeQ’s HomeEquity Bank had about C$4 billion ($3.1 billion) of assets as of November 2020. Toronto-Dominion Bank’s TD Securities advised Ontario Teachers’ on the transaction.
Birch Hill, based in Toronto, bought HomeQ in 2012 in a deal valued at about C$136 million.
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