Birch Hill, Brookfield to acquire Canada's First National Financial for C$2.9 billion

July 27 (Reuters) - First National Financial FN.TO said on Sunday it has reached an agreement to be acquired by private equity firm Birch Hill Equity Partners and asset manager Brookfield Asset Management BAM.TO in a deal valuing the company's equity at C$2.9 billion ($2.12 billion).

First National said that Birch Hill and Brookfield will buy its shares for C$48 each in cash. Founders Stephen Smith and Moray Tawse will each sell two-thirds of their current shareholding in the company.

First National said that Jason Ellis is likely to remain CEO of the Canadian financial services company, with the current leadership team also expected to stay in place following the completion of the transaction.

With more than $155 billion in mortgages under administration, First National is one of Canada's largest non-bank mortgage originators and underwriters.

($1 = 1.3692 Canadian dollars)