Real Estate Disposition LLC, a real estate auction company backed by Stone Point Capital, has agreed to acquire the retail title insurance agency platform of Pulte Homes Inc. (NYSE: PHM). No financial terms were disclosed.
Real Estate Disposition, LLC (REDC), a real estate services company and the nation’s largest real estate auction company, has signed a definitive agreement with Pulte Homes, Inc. (NYSE: PHM), to acquire the Commerce Title retail title insurance agency platform. The Commerce Title brand, retail branch network, and certain additional support assets are included in the sale. Subject to regulatory and licensing approvals, the sale is expected to close in the first quarter of 2010.
“REDC is excited about its entry into the title insurance agency segment,” said Jeffrey Frieden, CEO of REDC. “The Commerce Title retail platform, with its seasoned and successful team, is a great launching pad for our expansion into this market and will complement our other businesses nicely. We’re very excited about the opportunities ahead.” REDC is part-owned by Stone Point Capital, LLC, one of the nation’s premier private equity firms whose experience and relationships assist REDC in expanding its business worldwide.
“This is a good transaction for both companies as it allows Pulte to focus on its builder title operations while providing new growth opportunities for the Commerce Title retail team” said Debra W. Still, who oversees Pulte’s Financial Services Operations.
Approximately 130 Commerce Title retail employees will transition with the sale. Headquarters for the Commerce Title retail operation acquired by REDC will be located in Dallas, Texas. Pulte will retain that portion of the Commerce Title operations that support its new home sales, and the headquarters for those operations will also remain in Dallas. Commerce Title was formerly a subsidiary of Centex Corporation, which merged with Pulte effective August 18, 2009.
About Real Estate Disposition, LLC (REDC)
REDC was established in 1990 and is a real estate services company. In addition to being the leading real estate auction marketing firm in the country, the REDC group of companies also provide real estate brokerage services, asset management and short sale facilitation. The company has established a dominant position in its industry by selling more than $6 billion in real estate assets at auction in 2008 and 2009 alone. REDC’s primary clients are residential and commercial mortgage lenders and home builders. The success of the company is based on the aggregation of real estate assets (residential, commercial, notes) that are marketed and sold in large event-style auctions across the country as well as via on-line auctions. Information about REDC auctions is available on www.auction.com. For more information about REDC, visit www.redcgroup.com.
About Stone Point Capital LLC
Stone Point Capital is a global private equity firm that has raised more than $10 billion of committed capital. It primarily targets investments in the financial services industries, including outsourcing service providers focused on financial institutions, mortgage services, banks and depository institutions, insurance underwriting, insurance distribution, specialty lending and other credit opportunities, employee benefits and healthcare, and asset management businesses. Stone Point Capital has a history of successfully investing in the global financial services industry over a period of almost 25 years. For more information, visit www.stonepoint.com.
About Pulte Homes
Pulte Homes, Inc., based in Bloomfield Hills, Mich., is one of America’s largest home building companies with operations in 69 markets, 29 states and the District of Columbia. The Company has an unmatched capacity to meet the needs of all buyer segments through its brand portfolio that includes Pulte Homes, Centex and Del Webb, as well as its regional brands of DiVosta Homes (Florida) and Fox & Jacobs (Texas). In 2009, Pulte Homes brands received more top rankings than any other homebuilder in the annual J.D. Power and Associates 2009 New-Home Builder Customer Satisfaction Study(SM). Pulte Mortgage LLC is a nationwide lender offering Pulte customers a variety of loan products and superior service.