Just off the wires late last night, the newest merger in what's been a wave of consolidations: Green Tree Servicing will be sold to Centerbridge for an undisclosed amount.
The investor group, along with existing management, is buying 100% of the company's equity from funds managed by affiliates of Fortress Investment Group and from affiliates of Cerberus Capital Management. The acquisition is expected to be completed in the third quarter of 2007, subject to customary closing conditions. Terms of the transaction were not disclosed. Through this investment, Green Tree expects to grow its loan servicing volume and invest in new loan portfolios. Green Tree will use its current platform to continue to develop new business initiatives while expanding and diversifying its current operations. Keith Anderson, Chief Operating Officer of Green Tree Servicing, said, “This is great news for our organization. The new ownership group will provide capital resources, market expertise and strong strategic alliances that will enable us to focus on near-term growth initiatives. This will also empower Green Tree to develop long-term growth strategies, develop new products and expand into different markets within the consumer finance industry.�