Sheppard Mullin Advises WestStar Mortgage, Inc. in Acquisition Deal

Wednesday, March 11, 2015 - 12:44

The J.G. Wentworth Company(“J.G. Wentworth”) (NYSE: JGW), a leading purchaser of structured settlement payments, annuity payments, lottery payments and other receivables through the J.G. Wentworth and Peachtree brands, today announced that it has signed a stock purchase agreement to acquire WestStar Mortgage, Inc. (“WestStar”), a privately held residential mortgage company specializing in conforming mortgage lending, for $54 million in cash and J.G. Wentworth Class A Common Stock, with a minimum of 75 percent of the transaction in cash.

Headquartered in the Washington, D.C. suburb of Woodbridge, VA., WestStar specializes in originating Conventional, VA, and FHA loans and is licensed to operate in 40 states. In 2014, WestStar closed $1.5 billion of new loan originations, and the company sold or securitized approximately half of the loans it originated to government-backed organizations and half to third-party institutional investors in the secondary market. J.G. Wentworth believes that the transaction will be accretive to total earnings by 15-20 percent on an ongoing basis.

The acquisition is subject to customary closing conditions and regulatory approvals and is expected to be completed in the first half of 2015. Advisors to J.G. Wentworth were K&L Gates, KPMG and Reed Smith LLP. Firms advising WestStar were Houlihan Lokey and Sheppard Mullin. The Sheppard Mullin team representing WestStar Mortgage in this deal includes attorneys Ariel Yehezkel, David Sands, Thomas Michael and Keith Gercken.