Genworth completes $412.5 million sale of wealth management business
- September 3, 2013
Henrico County-based Genworth Financial Inc., a Fortune 500 company, has completed the $412.5 million sale of its wealth management businesses to a partnership formed by Aquiline Capital Partners and Genstar Capital.
The sale includes Genworth Financial Wealth Management and its alternative solutions provider, the Altegris companies.
“This transaction represents another milestone in our plan to turn the company around as we increase financial flexibility for Genworth. The sale, along with our recent senior notes offering, are important steps that put us in a position to improve financial leverage and address near-term debt maturities," Martin P. Klein, Genworth’s executive vice president and chief financial officer, said in a statement.
Genworth will record an after-tax loss of up to $10 million related to the sale in the third quarter of 2013.
Proceeds of approximately $360 million, together with cash on hand at Genworth Holdings Inc., will be used to address the company's remaining 2014 debt.
Goldman, Sachs & Co. and Sullivan & Cromwell LLP advised Genworth on the transaction.
Genworth operates three divisions selling life insurance, long-term care insurance, fixed annuities and mortgage insurance.