SOURCE: Rockwood National Corp.

February 08, 2011 09:25 ET

Rockwood National Corp. Announces Definitive Agreement to Acquire Gulfstream Processing, Inc.

BOCA RATON, FL--(Marketwire - February 8, 2011) - Rockwood National Corp. (PINKSHEETS: RNTL) ("Rockwood") announced today that it has signed a definitive binding letter of intent with Gulfstream Processing, Inc. ("Gulfstream"), a multi-state residential foreclosure processing business, to acquire 100% ownership of Gulfstream. In exchange for the 100% ownership interest in Gulfstream, Rockwood will issue US$200,000 in capital stock pro rata to the shareholders of Gulfstream at closing, and 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. Due diligence has been completed and the acquisition is scheduled to close on or before Feb. 21st, 2011. 

Gulfstream has partnered with a number of real estate law firms in key distressed markets to provide comprehensive foreclosure processing services, and has recently embarked on a campaign to expand its attorney network base. Ending 2010 with sales exceeding $1.8 million, Gulfstream is soundly in the growth stage of its lifecycle and has established a solid infrastructure with recurring revenue streams. Gulfstream now 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 has developed and perfected a proprietary business strategy which is easily expandable, generates repetitive monthly revenue, and can be scaled on a national level. By leveraging the strength of Rockwood's balance sheet, Gulfstream can now aggressively pursue entry into additional distressed real estate markets."

Adding further, Mr. Fioretti commented, "Gulfstream brings an enhanced synergistic value to the Rockwood core business model. At the end of the individual homeowner foreclosure defense lifecycle, Gulfstream clients become ideal candidates for Rockwood's short sale real estate brokerage services, which will ultimately lead to increased mortgage financing opportunities. Clearly, the acquisition of Gulfstream will provide increased revenue opportunities for 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 real estate brokerage 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

  • Contact Information:
    Gary Fioretti
    Chief Executive Officer