RE/MAX Holdings, Inc. Announces Completion Of Purchase Of North American Regions From RE/MAX INTEGRA

RE / MAX Holdings also announces a loan agreement change that will increase capacity and reduce borrowing costs

Proceeds from new term loans to repay existing debt and finance the acquisition of RE / MAX INTEGRA in the North American regions

DENVER, July 21, 2021 / CNW / – RE / MAX Holdings, Inc. (the “Company” or “RE / MAX Holdings”) (NYSE: RMAX), today announced that RE / MAX, LLC, one of the world’s leading franchisors for real estate brokerage services , has completed the previously announced acquisition of RE / MAX INTEGRA’s North American regions. Now that the sale is complete, more than 19,000 agents (approximately 12,000 in Canada and 7,000 in the US) and 1,100+ independent RE / MAX offices are now part of RE / MAX, LLC’s growing group of Corporate Regions (COR).

“We are excited to complete this groundbreaking regional acquisition,” said Adam Tales, CEO of RE / MAX Holdings. “The inclusion of these strategic and geographically desirable regions improves our ability to scale further, bring many attractive growth opportunities, and simplify our operational structure by creating greater efficiency. RE / MAX INTEGRA co-founder Frank Polzler and Walter Schneider have built an impressive network in the 40 years they have dedicated to growing this brand. Our goal is to continue their impressive legacy and support the continued growth of these regions under the umbrella of RE / MAX, LLC. ”

The RE / MAX INTEGRA regions acquired by RE / MAX, LLC comprise five Canadian provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island) and nine US states (the New England states Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, plus the Midwestern states of Indiana, Minnesota, and Wisconsin). RE / MAX INTEGRA owns the master franchise for RE / MAX Europe and will continue to operate there as it has been since 1994.

Acquiring independent regional RE / MAX franchises has long been a key pillar of the company’s growth strategy and a priority in capital allocation. RE / MAX, LLC has now acquired formerly independent regions that cover 21 states, two sub-states (Northern Illinois, South Ohio), the District of Columbia and five Canadian provinces starting their initial public offering (IPO) in October 2013. The acquisition of the North American regions from INTEGRA is the largest manifestation of this strategy to date.

“Affiliates in the former RE / MAX INTEGRA regions have benefited from years of strong leadership and innovative technology and can expect this high level of support and service to continue,” added RE / MAX, LLC President, Nick Bailey. “This acquisition enables us to scale, align and streamline operations across many functions by making the best tools, training and technology available on a larger scale. This is an exciting time for all RE / MAX partners.”

Mediation in Indiana, Minnesota and Wisconsin join the Central Region under RE / MAX Vice President Dana Tuggle and the New England offices will join the RE / MAX Vice President Kevin Northrup under the northeast region. Christopher Alexander, Senior Vice President, RE / MAX Canada and Elton Ash, Regional Executive Vice President, RE / MAX Canada, will work together to bring COR operations as a united front in Canada.

RE / MAX has a global network of nearly 140,000 agents in more than 110 countries and territories, a global presence greater than any of its competitors. RE / MAX, LLC is a wholly-owned subsidiary of RMCO, LLC and is controlled and administered by RE / MAX Holdings, Inc.

Debt financing
RE / MAX Holdings also announced today that RE / MAX, LLC has amended and rewritten its loan agreement to include the $ 460 million term loans and increase the capacity of the revolving facility $ 50 million. RE / MAX, LLC will use the proceeds from the amended loan agreement to repay existing debts of approx. $ 225 million and finance $ 235 million Acquisition of the North American regions RE / MAX INTEGRA.

“We are pleased to take advantage of the favorable market conditions and have achieved our goal of expanding our financing capacity to bring these regions under company ownership. We are delighted with the inherent growth potential of our business for the years to come,” said Karri Callahan, Chief Financial Officer of RE / MAX Holdings.

Financial orientation
RE / MAX Holdings will announce further details of the transaction, including updated financial forecasts, during the company’s second quarter conference call, which will be released on September 8, 2010 Thursday 5th August 2021, at 8:30 a.m. Eastern Time. Interested parties can access the conference call under the following link:

https://www.directeventreg.com/registration/event/3535213

Interested parties can also access a live webcast via the company’s investor relations website at https://investors.remaxholdings.com/.

About RE / MAX Holdings, Inc.
RE / MAX Holdings, Inc. (NYSE: RMAX) is a leading global real estate franchisor, operating real estate agents worldwide under the RE / MAX® brand and mortgage brokers in the United States under the Motto® Mortgage brand. RE / MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture that gives its agents and franchisees the flexibility to run their businesses with great independence. With nearly 140,000 brokers in over 110 countries and territories, no one in the world sells more properties than RE / MAX based on total residential transaction pages. Dedicated to innovation and change in the real estate industry, RE / MAX Holdings launched Motto Franchising, LLC, a pioneering mortgage broker-franchisor, in 2016. Motto Mortgage has grown to over 150 offices in nearly 40 states.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by the use of words such as “believe”, “intend”, “expect”, “Estimate,” “plan,” “look,” “project,” “anticipate,” “may,” “will,” “would” and other similar words and expressions that predict the future or suggest events or trends that do not Statements about historical matters are. Forward-looking statements include statements about the potential benefits of acquiring the North American RE / MAX INTEGRA regions, including expectations that the acquisition will improve the company’s ability to continue to scale, open many attractive growth opportunities, and simplify the company’s operations through structure Creating greater efficiency and cost and operational synergies; and statements on the growth of RE / MAX Holdings. Forward-looking statements should not be read as a guarantee of future performance or results and do not necessarily indicate the exact times that such performance or results may be achieved. Forward-looking statements are based on information available as of the date these statements are made and / or management’s good faith belief about future events and are subject to risks and uncertainties that could cause actual performance or results to be material which are expressed or suggested in the forward-looking statements. These risks and uncertainties include: (1) upcoming acquisitions may not, if at all, be completed on the terms described herein; (2) the company’s ability to successfully complete the anticipated acquisition and incorporate the acquired regions into its business; (3) the intended benefits of the acquisition may not be realized; (4) the global COVID-19 pandemic that is looming the company and continues to pose significant and widespread risks to the company’s business, (5) changes in the property market or interest rates and availability of finance, (6) changes in business and economic activity in general, (7) the ability of Society to attract and retain high quality franchisees, (8) the company’s ability to recruit and retain real estate agents and mortgage lenders, (9) changes in laws and regulations, (10) the company’s ability to implement the RE. to improve, market and protect / MAX and Motto Mortgage, 11) the company’s ability to execute its technology initiatives; and (12) exchange rate fluctuations and the risks and uncertainties identified in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations “in the most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (” SEC “) and similar information in subsequent periodic and current reports, which filings with the SEC, which are available on the Investor Relations page of the company’s website at www.remax.com and on the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of their publication. Except as required by law, the company does not intend or undertake any obligation to update this information to reflect future events or circumstances.

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SOURCE RE / MAX Holdings, Inc.