Walter Industries to spin off financing business

Walter Industries Inc., a Tampa company that produces coal for the steel industry, has outlined plans to separate its financing business from its natural resources business.

The company will distribute to shareholders all of its interest in its subsidiary JWH Holdings Co., which is the parent of Walter Mortgage Co. and Jim Walter Homes. Jim Walter Homes will be sold off, and JWH Holding Co. will merge with Hanover Capital Mortgage Holdings, a real estate investment trust in New Jersey.

The new company will be called Walter Investment Management Corp., based in Tampa, with 225 employees and led by Mark O'Brien, chairman and CEO of JWH Holding Co.

Walter Industries will transform "into a pure-play natural resources and energy company," chairman Michael Tokarz said. The merger and spinoff is expected to be completed in 2009.