Pension giant announces deal to snap up leading reverse mortgage issuer’s parent company
Ontario Teachers’ Pension Plan Board has entered into an agreement to acquire HomeQ corporation, the parent company of HomeEquity Bank.
According to a statement from the bank, Ontario Teachers will obtain ownership of HomeQ from Birch Hill Equity Partners Management, its major owner, and its other minority shareholders.
“HomeEquity Bank is an excellent fit for our growing portfolio of leading financial services firms,” said Karen Frank, senior managing director of Equities at Ontario Teachers'. “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.”
HomeEquity Bank is the leading Canadian bank that offers reverse mortgage solutions, including its flagship CHIP Reverse Mortgage. With a 30-year track record of helping Canadian homeowners 55 and older age in place by unlocking the equity in their residences, the bank is positioned for sustained growth as more near-retirees age and seek solutions to create income and build wealth.
“We are excited about the value Ontario Teachers' will bring as we continue to serve Canada's rapidly growing retiree population,” said HomeEquity Bank President and CEO Steven Ranson. “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.”
Over the past nine years under Birch Hill’s ownership, HomeEquity Bank said it has undergone significant growth driven by strong leadership, increased diversity of distribution channels, product expansion, and other factors that helped it resonate with house-rich Canadians aged 55 and older.
“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,” Frank said.
Terms of the acquisition were not disclosed. It’s expected to close in the first half of 2022, pending regulatory approval.
