Guild swoops Maine-based retail originator to build market share
Publicly traded nonbank Guild Holdings has signed a definitive merger agreement to acquire Maine-based retail originator Residential Services Holding (RMS) as it continues to build market share across the US.
The purchase price is estimated at $196.7 million, with a three-year earnout for the seller. The RMS management team will also continue to run the business once the transaction is complete.
In a statement, Guild said that the move will extend its footprint in the Northeast region and create growth opportunities.
“We have a history of growing through targeted acquisitions, and the transaction with RMS supports our strategy to expand into the Northeast,” said Guild CEO Mary Ann McGarry. “Our close cultural alignment and commitment to strong values across both organizations, combined with a retail and purchase market focus, provide us with confidence that this acquisition will contribute to our ongoing success. With both teams dedicated to providing exceptional customer service, and the many synergies between our products, sales tools, and servicing teams, this is a natural fit.”
Established in 1991, RMS has a strong presence in the New England and Mid-Atlantic states, with around 70 offices across the region. Last year, the company originated $8.5 billion of loans.
“We are excited to join forces with Guild Mortgage to drive continued growth for our respective stakeholders,” said Jim Seely, president and CEO of RMS. “This transaction is a natural next step to build on our success and take our business to the next level by partnering with a national powerhouse in the residential mortgage market. Leveraging Guild’s technology, in-house servicing platform, and enhanced access to the capital markets will enable us to further expand our value to our customers, provide new opportunities for our employees and continue growing our market share in the Northeast.”
