M&A Deal Summary

Prudential Mortgage Capital Company Acquires The WMF Group

On June 1, 2000, Prudential Mortgage Capital Company acquired financial services company The WMF Group from Capricorn Holdings

Acquisition Highlights
  • This is Prudential Mortgage Capital Company’s 1st transaction in the Financial Services sector.
  • This is Prudential Mortgage Capital Company’s 1st transaction in the United States.
  • This is Prudential Mortgage Capital Company’s 1st transaction in Virginia.

M&A Deal Summary

Date 2000-06-01
Target The WMF Group
Sector Financial Services
Buyer(s) Prudential Mortgage Capital Company
Sellers(s) Capricorn Holdings
Deal Type Add-on Acquisition

Target

The WMF Group

Vienna, Virginia, United States
Formerly Washington Mortgage Financial, WMF was one of the largest servicers of multi-family mortgages and the largest originator of Federal Housing Administration insured multi-family housing loans Previously owned by NHP, Inc., WMF was spun off as a public company in 1997 to shareholders of NHP, including Capricorn II, which helped position WMF to capitalize on the consolidation occurring in the highly fragmented mortgage brokerage industry. WMF made numerous subsequent acquisitions of leading regional entities, enhancing its ability to offer economies of scale in service and origination At the time of its sale to Prudential Insurance Company in 1998. WMF?s servicing portfolio had grown to $1 2 billion, a 100% increase from 1996 levels, while EBITDA had doubled.

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Buyer(S) 1

Buyer

Prudential Mortgage Capital Company

Newark, New Jersey, United States

Category Company
Founded 1997
Sector Financial Services
DESCRIPTION

Prudential Mortgage Capital Company, LLC provides commercial mortgage financial services.


DEAL STATS #
Overall 1 of 1
Sector: Financial Services M&A 1 of 1
Type: Add-on Acquisition M&A Deals 1 of 1
State: Virginia M&A 1 of 1
Country: United States M&A 1 of 1
Year: 2000 M&A 1 of 1

Seller(S) 1

SELLER

Capricorn Holdings

Greenwich, Connecticut, United States

Category Private Equity Firm
Founded 1987
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Capricorn Holdings is a privately held investment group that seeks to investments in middle-market companies operating in basic industries. The firm pursues transactions valued between $50 and $500 million and looks for companies with moderate to low technological risk, strong customer franchises, history of profits, low capital intensity, and possessing undervalued assets. Post acquisition, Capricorn looks to improve operations and build through acquisitions. In addition to distressed situations, Capricorn also purses traditional buyouts, acquisitions, recapitalizations, and spin-offs. Capricorn Holdings was founded in 1987 and is based in Greenwich, Connecticut.


DEAL STATS #
Overall 4 of 11
Sector: Financial Services M&A 1 of 1
Type: Add-on Acquisition M&A Deals 1 of 2
State: Virginia M&A 2 of 4
Country: United States M&A 4 of 11
Year: 2000 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-01-01 Process Technology Holdings

United States

PTH was a global provider of machinery and parts to the crushing and screening segments of the mining and aggregating industries. Formed from the 1992 merger of W.S. Tyler, purchased in 1989 and wholly-owned by Capricorn I, with a competitor, R.J. Dick. Inc.. PTH focused on growth through licensing, acquisitions and product expansion, - In 1997 and 1998, PTH restructured its activities through separate sales of non-core operations representing about half of its revenues.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2002-01-01 Americana Foods Limited

Dallas, Texas, United States

Americana Foods is among the largest anti most versatile ice cream and yogurt manufacturers in the United States. Its facility, located in Dallas. Texas, supplies a variety of soft-serve mixes, packaged ice cream, frozen yogurt, sarbet products and frozen novelties to national retailers. food companies and restaurant chains Americana was acquired in the 2002 purchase by Mrs. Fields of T8Y and subsequently sold to Capricorn Ill. Coolbrands International, lnc, a world leader in franchising and consumer products of the frozen dessert sector with a variety of licensed brands such as Tropicana. Eskimo Pie and Betty Cracker, has been engaged as the joint venture partner to manage the company. Revenues for the year ending August 2004 were about $100 million.

Buy -