Terwin Buys Hanover's Due Diligence Business
Hanover Capital Mortgage Holdings here has sold its due diligence assets to Terwin Acquisitions, which does business as The Winter Group.
With the sale of assets from its Hanover Capital Partners 2 division, Hanover said it is exiting the business of providing due diligence services to the financial services industry.
HCM said the sale price was $1.2 million, subject to further post-closing adjustments, but Hanover expects to realize approximately $4.7 million in cash from the transaction after the collection of receivables retained by Hanover in the deal.
HCM said it will still use the name Hanover Capital Partners 2, and plans to continue to perform certain financial and technology functions through this entity.
In a news release, HCM's president and CEO, John Burchett, said the sale "is the concluding step in achieving our long-stated goal of reducing the significance of our non-REIT businesses and focus on our portfolio investments."
He said the cash realized from the sale of the due diligence business will be invested in the company's portfolio as rapidly as possible.
The Winter Group, which is privately held, said it intends to expand its investment in mortgage-related due diligence services through the Hanover asset acquisition.
Tom Guba, president of The Winter Group, said the company expects to maintain HCM's due diligence client relationships.
"When combined with our existing due diligence operation in Denver and our IT capabilities, this transaction makes us a significant provider of outsourced solutions to the mortgage industry," Mr. Guba said in the news release. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com