The acquisition of Toronto-based Home Capital Group Inc. (TSX: HCG) by Smith Financial Corp. has been completed.
Last November, Home Capital agreed to be acquired by Smith Financial for C$44.00 per share in cash, or C$1.7 billion (US$1.2 billion) total. With the transaction completed, Home Capital’s common shares will shortly be delisted from the Toronto Stock Exchange and will cease to be a reporting issuer under applicable Canadian securities laws.
Home Capital operates through its principal subsidiary, Home Trust Co., as a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services across Canada. It will now operate as a Smith Financial company.
Headquartered in Mooresville, North Carolina, Smith Financial has significant equity positions in Canada Guaranty Mortgage Insurance Co., Fairstone Bank of Canada, First National Financial Corp., Glass-Lewis & Co., Equitable Bank and Peloton Capital Management.
“For many reasons, including the strength of Home’s brand among mortgage brokers, deposit brokers and hundreds of thousands of customers across Canada, we are delighted to welcome this market-leading company and its hard-working team into the Smith Financial Corp. family,” said Stephen Smith, founder and CEO of Smith Financial. “Home Capital is a strategic holding for us, and we will give our support to preserve, protect and advance Home’s place in the industry under its dedicated leadership. We look forward to collaborating with all Home stakeholders as a committed long-term owner.”
Photo of Stephen Smith courtesy of Smith Financial Corp.
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