SOURCE: Rockwood National Corp

April 05, 2011 08:45 ET

Rockwood Announces Definitive Agreement to Acquire J&M Marketing and Advertising, Inc.

BOCA RATON, FL--(Marketwire - April 5, 2011) - Rockwood National Corp. (PINKSHEETS: RNTL), ("Rockwood") announced today that it has signed a definitive binding letter of intent with J&M Marketing and Advertising, Inc. (J&M), a multi-state distressed residential real estate marketing firm, to acquire 100% ownership of J&M. In exchange for the 100% ownership interest in J&M, Rockwood will issue capital stock to the shareholders of J&M tied to a performance earn out based on net profitability over the next 2 years. The total value of the transaction is estimated at US$1,000,000. Due diligence is in the final stages and the acquisition is anticipated to be concluded on or before April 15, 2011. 

J&M is the exclusive contract marketing and client generation source for the multi-state attorney network base of Gulfstream Processing Services, Inc., recently acquired by Rockwood (Newswire, March 24, 2011). Employing highly sophisticated and targeted direct-to-the-consumer mail and SEO Internet strategies, J&M identifies distressed residential homeowners who could benefit from the services offered by the affiliated attorney base. The homeowners engage the attorney directly, with all file processing contractually performed by Gulfstream.

Gary A. Fioretti, Chief Executive Officer of Rockwood, stated: "A fundamental element of Rockwood's mortgage growth strategy centers on providing continual opportunities to its origination base. By focusing attention on building a pipeline of short sale listings for our real estate distribution system, which ultimately provide the lowest cost leads for our mortgage platform, Rockwood continues to position itself for long term growth in this arena. The acquisition of J&M provides Rockwood the unique ability to generate and capture sustainable new business for both subsidiaries beginning at the earliest stages of the service lifecycle."

Adding further, Mr. Fioretti commented, "With the present state of the distressed housing market, and recognizing that mortgage refinance opportunities have dwindled due to compressed property valuations, competition is keen among mortgage origination professionals seeking new purchase money financing leads. Rather than employing the standard strategy of competing for traditional business from unaffiliated real estate agents, Rockwood can now begin cultivating future short sale listings for its own internal real estate brokerage division, while simultaneously generating new mortgage targets well in advance of our competition. This methodology will not only significantly increase production opportunities, but will also directly enhance bottom line performance for both operating units."

About Rockwood National Corp.
Rockwood is a diversified, national real estate services company focused on the primary components in the industry. By pursuing a strategy of providing complete default loss mitigation (REO & Short Sale), real estate brokerage, full mortgage origination and title service capabilities, Rockwood's goal is to quickly capture market share in each sector and become the preferred "one-stop" provider of choice. At the end of the current distressed asset lifecycle, Rockwood anticipates having built an unmatched national real estate and mortgage distribution channel for continued production, and be in superior position to offer portfolio retention services to financial institutions across the country. By monetizing the activities of its core components through internal operations as well as the referral and revenue sharing with its strategic partners, Rockwood views the development of this professional network as a valuable asset to drive earnings while simultaneously creating continued growth opportunities. It is these same preferred partners that ultimately will become the next acquisition candidates as Rockwood continues to grow its nationwide distribution network.

Forward-Looking Statements
Certain statements in this news release are forward-looking. All statements other than statements of historical facts included in this news release including, without limitation, statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "estimates," "projects," "potential," "target," "goal," "plans," "objective," "should," "may," "would" or similar expressions or variations on such expressions are forward-looking statements. Rockwood can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause Rockwood's actual results to differ materially from the forward-looking statements including, but not limited to, Rockwood's ability to identify appropriate corporate acquisition and/or joint venture opportunities in the real estate sector, Rockwood's ability to raise the required capital to take advantage of and successfully participate in any such opportunities, and future economic conditions affecting real estate valuations. Rockwood disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Contact Information

  • Contact Information:
    Gary Fioretti
    Chief Executive Officer
    561-252-7236