Mr. Cooper Group is acquiring all outstanding shares of mortgage lender Home Point Capital for $324 million in cash. The Ann Arbor-based Home Point—which has an $84 billion servicing portfolio—lost nearly $164 million in 2022. As part of the transaction, Mr. Cooper Group will assume $500 million in outstanding Home Point’s 5 percent senior notes, which are due in February 2026.
Following the onboarding of Home Point’s approximately 300,000 customers and the closing of the transaction, Mr. Cooper will close the remaining Home Point operations. In 2022, Mr. Cooper reported $2.46 billion in revenue and $923 million in net income.
“This acquisition is consistent with our strategy of growing our customer base, deploying our capital with a focus on attractive risk-adjusted returns, and maintaining a very strong balance sheet,” Mr. Cooper Group CEO Jay Bray said. “Home Point has amassed an impressive servicing portfolio, consisting of conventional loans to borrowers with high FICO scores, low coupons, and strong equity cushions. We look forward to welcoming these customers to Mr. Cooper and providing them with a high-quality, personalized, and friction-free experience.”
Jacobs Is Spinning Off Its Government Services Unit into Standalone Company
Dallas-based engineering giant Jacobs is separating its Critical Mission Solutions (CMS) business—which accounted for $4.4 billion in revenue in 2022—from Jacobs, creating two independent companies. CMS provides consulting and data analytics services to the United States government and foreign governments.
After the spin off is completed, which is expected to take place in the second half of 2024, CMS President Steve Arnette will continue to lead the business.
“[The decision] to separate the CMS business represents the next step in our strategic portfolio transformation, unlocking enhanced long-term shareholder value by creating a streamlined higher growth, higher margin business portfolio focused on critical infrastructure and sustainability,” Jacobs CEO Bob Pragada said. “CMS has grown to be an industry leading government services provider with significant scale, differentiated services and deep client relationships. As an independent company, CMS will be better able to focus on its distinct strategy and operating needs, driving further momentum in its business. We believe the separation will create value for all stakeholders.”
Jacobs closed the second quarter of 2023 with $4.1 billion in revenue, bringing half-year revenue to $7.9 million. “We continue to see increasing momentum in critical infrastructure, including water, transportation and sustainability,” Jacobs’ President and CFO Kevin Berryman said. “Our strong financial position and re-affirmed full-year cash flow guidance will allow us to continue to re-invest behind our accelerators while managing a disciplined capital allocation strategy.”
Lawn & Garden Relocates Headquarters to Irving
Lawn & Garden, a $150 million manufacturer and wholesaler of gardening products, relocated its headquarters from Coppell to Irving. The new 11,400-square-foot Irving headquarters is located north of DFW International Airport at the Esters 114 Business Center.
The HQ facility is owned by Stanton Road Capital, a private investment management firm focused on direct real estate investments and select private equity strategies. “We feel Lawn & Garden’s decision to make Esters 114 its HQ fits our belief that the profile of this property is what tenants are drawn toward. We look forward to serving their team for years to come,” Tim Ronan Jr., founder and managing partner of SRC, said.
Lawn & Garden owns large gardening and lawn care brands Weedblock, Gilmour, Powergrid, and Nelson.