SOURCE: Rockwood National Corp

March 29, 2011 08:30 ET

Rockwood Announces the Acquisition of Gulfstream Processing Services, Inc.

BOCA RATON, FL--(Marketwire - March 29, 2011) - Rockwood National Corp. (PINKSHEETS: RNTL), ("Rockwood") announced today that it has closed on the acquisition of Gulfstream Processing Services, Inc., ("Gulfstream"), an attorney-driven, multi-state loss mitigation services provider. In exchange for the 100% ownership interest in Gulfstream, Rockwood issued US$200,000 in capital stock pro rata to the shareholders of Gulfstream at closing, and will pay an additional performance earn out to Gulfstream based on net profitability over the next 2 years. The total value of the transaction is a minimum US$1,000,000. 

Gulfstream has partnered with a number of real estate law firms in key distressed markets to provide comprehensive foreclosure processing services, and has recently expanded into 5 additional states. With 2010 revenue exceeding $1.8 million, Gulfstream has established a solid infrastructure and continues to expand during the growth stage of its lifecycle. Gulfstream enjoys industry-wide name recognition and targets expansion of its attorney-partner base by more than 250% during 2011.

Gary A. Fioretti, Chief Executive Officer of Rockwood, stated: "Gulfstream is a premier provider of loss mitigation services, and demand for their quality service has steadily increased during the present housing crisis. With a perfected and readily expandable proprietary business strategy, Gulfstream generates recurring monthly revenue streams and will enjoy unabated growth opportunities on a national level over the next 4 years as the real estate industry works through the estimated $7 trillion shadow inventory. Continued expansion into additional distressed real estate markets will drive revenue and earnings for Gulfstream to new heights in the coming quarters."

Adding further, Mr. Fioretti commented, "Gulfstream brings an enhanced synergistic value to the Rockwood core business model. At the end of the loss mitigation lifecycle, Gulfstream clients become ideal candidates for Rockwood's short sale real estate brokerage services, which ultimately lead to increased mortgage financing opportunities. The acquisition of Gulfstream provides Rockwood a no-cost lead base to further drive revenue opportunities in both the real estate and mortgage lending divisions. Of equal importance, the planned expansion of the Gulfstream attorney network base will undoubtedly lead Rockwood to additional acquisition targets, further enhancing our national distribution capabilities."

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