Finance of America Companies announced it will acquire assets of American Advisors Group AAG a leading direct-to-consumer reverse mortgage lender, in exchange for a combination of cash and equity. The transaction underscores FOA‘s commitment to invest in businesses that have strong growth potential with structural and demographic tailwinds. Commenting on bringing AAG’s direct-to-consumer retail channel under the FOA umbrella, Graham A. Fleming, FOA President and Interim Chief Executive Officer, said, "We believe home equity will be an increasingly important asset for Americans to consider in order to supplement their incomes, especially in retirement. We are confident that our expansion into this direct-to-consumer retail channel will position us to further educate, grow and service this market while driving enhanced value and opportunities for our customers, employees, partners and investors." Upon completion of the deal, which is expected to be accretive to both Tangible Book Value and Earnings Per Share, FOA’s subsidiary, Finance of America Reverse will operate a separate direct-to-consumer retail channel under the brand name AAG, whose ads currently reach over 10M consumers annually in various ways, including the use of celebrity spokesperson Tom Selleck. The transaction is expected to close in the first half of 2023, subject to customary closing conditions and regulatory approvals. In support of this transaction, existing stockholders of the Company, including entities affiliated with Brian L. Libman, the Company’s chairman and founder, have committed to invest an additional $30M of capital into the Company through a private placement of FOA’s common stock. The investment is conditioned upon customary closing conditions, including the closing of the AAG transaction.
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