Press release from PR Newswire
Genworth Announces Closing Of Wealth Management Business Sale
Tuesday, September 03, 2013
Genworth Announces Closing Of Wealth Management Business Sale08:15 EDT Tuesday, September 03, 2013
RICHMOND, Va., Sept. 3, 2013 /PRNewswire/ -- Genworth Financial, Inc. (NYSE:GNW) announced today it has closed the sale of 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 was $412.5 million and the company will record an additional after-tax loss of up to $10 million related to the sale in the third quarter of 2013. Proceeds of approximately $360 million, net of transaction costs and payments to settle obligations to the former owners of its Altegris businesses, together with cash on hand at Genworth Holdings, Inc., will be used to address the company's remaining 2014 debt at maturity or before.
"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," said Martin P. Klein, executive vice president and chief financial officer. "We believe this sale provides the Wealth Management business and their new owners a strong platform to grow going forward, and we thank the employees of the business for their contributions to Genworth."
Goldman, Sachs & Co. and Sullivan & Cromwell LLP advised Genworth on this transaction.
About Genworth Financial Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company dedicated to helping people secure their financial lives, families and futures. Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement -- including life insurance, long term care insurance, and financial protection coverages -- and mortgage insurance that helps consumers achieve home ownership while assisting lenders in managing their risk and capital.
Genworth operates through three divisions: U.S. Life Insurance, which includes life insurance, long term care insurance and fixed annuities; Global Mortgage Insurance, containing U.S. Mortgage Insurance and International Mortgage Insurance segments; and the Corporate and Other division, which includes the International Protection and Runoff segments. Products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth, headquartered in Richmond, Virginia, traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com. From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com.
Cautionary Note Regarding Forward-Looking Statements This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to our plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts as well as statements identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.
SOURCE Genworth Financial, Inc.
For further information: Investors - Georgette Nicholas, +1-804-662-2248, email@example.com or Media - Al Orendorff, +1-804-662-2534, firstname.lastname@example.org, www.genworth.com/presscenter