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Genworth Financial, Inc.
announces it has reached an agreement to sell its Wealth Management
business, including Genworth Financial Wealth Management and alternative
solutions provider, the Altegris companies, to a partnership of Aquiline
Capital Partners and Genstar Capital. The sale price is expected to be
approximately $412.5 million and the company will record an after-tax loss of
approximately $40 million related to the sale with approximately $35 million
recorded in the first quarter of 2013 and the remainder upon closing. The
sale is expected to close in the second half of 2013, subject to customary
closing conditions, including requisite regulatory approvals. Proceeds from
the transaction, net of transaction related expenses, will be held at the
holding company and be used to address the 2014 debt at maturity or before.
"This transaction is another step forward in executing our strategy, by
generating capital from a non-core business and increasing financial
flexibility for Genworth," said Martin P. Klein, executive vice president and
chief financial officer. "The sale of Wealth Management also provides the
opportunity for our employees there and the purchaser to have a strong
business to grow going forward."
As of the first quarter of 2013, the Wealth Management business will be
classified as an asset held for sale in the balance sheet and discontinued
operations in the statement of net income, and will be excluded from operating
income. The company will provide further updates associated with this
transaction on its first quarter 2013 earnings call.
Goldman, Sachs & Co. and Sullivan & Cromwell LLP advised Genworth on this
transaction.
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