Ontario Teachers’ Pension Plan Board has 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 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.