New Century Financial Corp. of California said Friday it will buy 135 U.S. branches of RBC Mortgage Co., a division of Royal Bank.
Terms of the deal were not disclosed.
New Century is a real estate investment trust based in Irvine, Calif. The company said its subsidiary, Home123 Corporation, will buy the branches from RBC.
New Century said the cash deal is expected to boost its earnings-per-share within the first 12 months following the close of the transaction, which is anticipated to occur in the third quarter of this year.
Jonathan Threadgill, the president and CEO of RBC Mortgage, will be joining New Century when the deal is finished.
“Following a review of our U.S. operations, we determined that the national mortgage business was not strategic to achieving our goals,” said Peter Armenio, the head of U.S. and international operations for Royal Bank.