SunTrust to Sell Asset Management Arm

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. 

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