Tiptree Financial Inc. Completes Strategic Transaction with Luxury Mortgage
NEW YORK, Feb. 7, 2014
NEW YORK, Feb.7, 2014 /PRNewswire/ -- Tiptree Financial Inc. (NASDAQ: TIPT)
("Tiptree") announced today that it has completed its previously announced
strategic transaction with Luxury Mortgage Corp. ("Luxury Mortgage" or the
"Company"). Under terms of the related transaction agreements Tiptree has
acquired a majority interest in Luxury Mortgage and its previously funded
senior secured term loan remains outstanding.
Luxury Mortgage expects to use the proceeds of the investment to expand
operations through additional origination channels such as retail expansion
and a new correspondent channel which will focus on acquiring prime credit
jumbo loans. With Tiptree's support, Luxury Mortgage will also pursue
expansion opportunities through strategic alliances and strategic acquisitions
in existing and new markets. Upon closing, Michael Barnes, Executive Chairman
of Tiptree, and Geoffrey Kauffman, CEO of Tiptree, joined Luxury Mortgage's
Board of Directors in connection with the transaction.
Mr. Barnes stated, "Luxury is the sixth business to become part of Tiptree
and, consistent with our previous acquisitions, we intend to support Luxury
both strategically and financially while maintaining our focus on providing
growth and value to our shareholders."
Mr. David Adamo, CEO of Luxury Mortgage, stated, "Our relationship with
Tiptree has been formed over the past three years and we are thoroughly
impressed with the leadership team and their proven track record for success.
We are equally excited about all of the opportunities that come from being
affiliated with a public company that has over $500 million in stockholders'
"Having a partner of Tiptree's caliber will enable us to embark on a strategic
plan that will enhance, expand, and broaden our ability to execute several key
growth initiatives," added Robert Grosser, President of Luxury Mortgage.
Mr. Kauffman stated, "We believe there is a significant opportunity to
continue to grow Luxury Mortgage and to build upon the strong business that
David and his team have established. Luxury is an excellent addition to the
Tiptree family of companies, and we are looking forward to working with the
entire Luxury Mortgage organization."
Coltin Securities was the financial advisor to Luxury Mortgage in the
About Luxury Mortgage Corp.
Luxury Mortgage, founded in 1996 by CEO David Adamo, is a national mortgage
banking firm which specializes in originating prime credit jumbo and agency
loans. Luxury Mortgage acquires residential loans on a retail and wholesale
basis through a network of retail branches and approved third party
originators, which include depository institutions, mortgage bankers and
About Tiptree Financial Inc.
Tiptree Financial Inc. is a diversified holding company engaged through its
consolidated subsidiaries in a number of businesses and is an active acquirer
of new businesses. Tiptree, whose operations date back to 2007, currently has
subsidiaries that operate in four industry segments: insurance and insurance
services, specialty finance, asset management and real estate. Tiptree is
publicly traded on the NASDAQ stock market (NASDAQ: TIPT). For additional
information, please visit Tiptree's website at www.tiptreefinancial.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking statements" which involve risks,
uncertainties and contingencies, many of which are beyond Tiptree's control,
which may cause actual results, performance, or achievements to differ
materially from anticipated results, performance, or achievements. All
statements contained in this release that are not clearly historical in nature
are forward-looking, and the words "anticipate," "believe," "estimate,"
"expect," "plan," "target," and similar expressions are generally intended to
identify forward-looking statements. Such forward-looking statements include,
but are not limited to, statements about Tiptree's plans, objectives,
expectations and intentions. There are various factors that could cause actual
results to differ materially from those in any such forward-looking
statements, many of which are beyond Tiptree's control, including economic,
business, funding market, competitive and/or regulatory factors. Factors such
as these are set forth under the captions "Forward-Looking Statements" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" (or similar captions) in Tiptree's most recent Annual Report on
Form 10-K and its quarterly reports on Form 10-Q, and as described in
Tiptree's other filings with the Securities and Exchange Commission ("SEC").
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as to the date of this release. We cannot
guarantee the accuracy of any such forward-looking statements contained in
this release, and Tiptree is under no obligation to (and expressly disclaims
any such obligation to) update or alter its forward-looking statements,
whether as a result of new information, future events or otherwise.
SOURCE Tiptree Financial Inc.
Contact: (212) 446-1400, firstname.lastname@example.org
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