Genworth Announces Closing Of Wealth Management Business Sale
RICHMOND, Va., Sept. 3, 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
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
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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
SOURCE Genworth Financial, Inc.
Contact: Investors - Georgette Nicholas, +1-804-662-2248,
email@example.com or Media - Al Orendorff, +1-804-662-2534,
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