TORONTO, Sept. 22, 2021 /CNW/ - Ontario Teachers' Pension Plan Board ("Ontario Teachers'") announced today that it has entered into an agreement to acquire HomeQ Corporation ("HomeQ"), the parent company of HomeEquity Bank, from Birch Hill Equity Partners Management Inc. ("Birch Hill") and the other minority shareholders of HomeQ. The completion of the acquisition is subject to receipt of required regulatory approvals, which the parties expect to occur in the first half of 2022.
HomeEquity Bank is Canada's leading bank offering reverse mortgage solutions including the flagship CHIP Reverse Mortgage. HomeEquity Bank has a 30-year track record of helping Canadians 55 and older age in place by accessing the equity in their homes. The bank is well positioned for sustained growth as more Canadians near retirement age and seek innovative solutions to create income and build wealth.
"HomeEquity Bank is an excellent fit for our growing portfolio of leading financial services firms. 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."
"We are excited about the value Ontario Teachers' will bring as we continue to serve Canada's rapidly growing retiree population. Its 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," said Steven Ranson, President and Chief Executive Officer of HomeEquity Bank. "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 company's significant growth over the past nine years during Birch Hill's ownership has been driven by strong leadership, increased diversity of distribution channels, product expansion, significant investment in marketing and technologies, and a revitalized brand that resonated strongly with the attitudes of Canadian homeowners aged 55 plus.
Ontario Teachers' was advised by TD Securities Inc. as financial adviser, with Blake, Cassels & Graydon, LLP as legal adviser. Legal adviser to HomeQ was Torys LLP.
About HomeEquity Bank
HomeEquity Bank is a Schedule 1 Canadian Bank offering a range of reverse mortgage solutions including the flagship CHIP Reverse Mortgage™ product. The company was founded more than 30 years ago as an annuity-based solution addressing the financial needs of Canadians who wanted to access the equity of their top asset – their home. The Bank is committed to empowering Canadians aged 55 plus to live the retirement they deserve, in the home they love. For more information, visit www.chip.ca
About Ontario Teachers'
Ontario Teachers' Pension Plan Board ("Ontario Teachers'") is the administrator of Canada's largest single-profession pension plan, with C$227.7 billion in net assets (all figures at June 30, 2021 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. The defined-benefit plan, which is fully funded as at January 1, 2021, invests and administers the pensions of the province of Ontario's 331,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
About Birch Hill Equity Partners
Birch Hill is a Canadian mid-market private equity firm with a 26-year history of driving growth in portfolio companies and delivering returns to investors. Based in Toronto, Birch Hill currently has over $4 billion in capital under management. Since 1994, Birch Hill has made over 68 investments, with 52 fully-realized. Today, their 16 partner companies collectively represent one of Canada's largest corporate entities with over $6 billion in total revenue and more than 34,000 employees.
SOURCE HomeEquity Bank
Media Contacts, HomeEquity Bank, Yvonne Ziomecki, EVP & CMO, Phone: (416) 554-1669, Email: [email protected]; Ontario Teachers', Dan Madge, Director, External Communications, Phone: (416) 419-1437, Email: [email protected]; Birch Hill Equity Partners, Pierre Schuurmans, COO and Partner, Phone: (416) 775-3830, Email: [email protected]
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