Genworth Sells Wealth-Management Unit
Mar 27th 2013 6:50PM
Updated Mar 27th 2013 6:56PM
Genworth Financial has reached a deal to divest its wealth-management assets. The sale is to a partnership consisting of Aquiline Capital Partners and Genstar Capital, and the price is expected to be roughly $412.5 million.
The deal is expected to close in the second half of this year. Genworth Financial said it anticipates booking an after-tax loss of around $40 million related to the transaction. Of that amount, $35 million will be booked in Q1 2013, and the rest at closing.
The company quoted its CFO Martin Klein as saying that the deal "is another step forward in executing our strategy, by generating capital from a non-core business and increasing financial flexibility for Genworth."
Goldman Sachs and law firm Sullivan & Cromwell both advised Genworth on the deal.
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