SCOTTSDALE, Ariz.--First Western Corp. said Monday that it had agreed to acquire all the stock of Greenwich Capital Financial Inc. for approximately $130 million.
Greenwich is a mortgage banking subsidiary of Greenwich Capital Markets Inc.., a unit of Long-Term Credit Bank of Japan Ltd.
Greenwich's mortgage servicing portfolio would more than double that of First Western's fast-growing subsidiary, Wesav Mortgage Corp. As of Aug. 1, Wesav's portfolio was just under $2 billion.
Arizona-based First Western said Greenwich is the No. 1 residential loan originator in Dallas and No. 3 in Chicago. It has 225 employees.
A Big Expansion
"We are buying a company that services a $2 billion portfolio at fair market value, and getting a distribution network of new loan production that exceeded $1 billion during 1991," said Robert W. Stallings, First Western's chairman and chief executive. Wesav had "proven 1991 loan production capability exceeding $2 billion," including the recently acquired Beverly Hills Securities Co, he added.
Since going public in March, First Western has also acquired UDC Mortgage Corp.'s $300 million servicing portfolio.
First Western said it hopes to buy Greenwich this month. The final price would be based on July 31 net book value plus $4 million. Mr. Stallings said about $15 million in term debt, $100 million in warehouse financing, and equity capital would finance the deal.
