SunTrust Banks (NYSE: STI ) is about to let go of asset management firm RidgeWorth Capital Management. Both companies announced in separate press releases that they have signed an agreement for SunTrust to sell RidgeWorth to a consortium of its employees and an investor group related to private equity firm Lightyear Capital. The base price is $245 million, with a potential $20 million extra based on the retention of certain assets.
The sale is part of a broader effort by the bank to reduce its asset management activities. It estimates that it will book an after-tax gain of $50 million on the sale.
RidgeWorth had nearly $51 billion in assets under management as of the end of November. SunTrust said it contributed roughly $25 million to its parent's $918 million in net income in the first nine months of this year.
Both companies expect the transaction to close in Q2 2014.