FirstCity Financial deal worth $225 million

WACO – A $225 million deal closed that has Minnesota-based Varde Partners acquiring Waco-based FirstCity Financial Corp. — a major player in purchasing distressed assets such as shopping centers and office buildings and turning around their fortunes.

“The FirstCity headquarters will remain in Waco and we hope to grow our operations,” said James Holmes, senior vice president and managing director of FirstCity who will become chief credit officer in the deal that takes the company private.

FirstCity employs 116 at its offices on Imperial Drive and about 20 at a satellite center in Dallas. Holmes said joining forces should translate into hiring.

“Today marks an important next step in FirstCity’s development and position in the marketplace,” said Mark B. Horrell, now CEO, in a prepared statement.

“Under Varde’s leadership as a privately held company, FirstCity will have enhanced financial flexibility, enabling us to focus on our strategic direction and long-term goals.” That strategy includes targeting more troubled properties in the U.S. and reducing business outside the country.