SunTrust Banks To Sell Its Subsidiary, RidgeWorth For Price Of Up To $265 Mln

(RTTNews) - SunTrust Banks Inc. (STI) announced Wednesday that it agreed to sell its asset management subsidiary, RidgeWorth Capital Management, Inc. to RidgeWorth employees and an investor group led by a private equity fund managed by Lightyear Capital LLC.

The sale price consists of up to $245 million to be paid at closing with the potential for up to $20 million in additional proceeds based on retention of certain assets. SunTrust estimates the after-tax gain on the transaction to be $50 million.

The sale is expected to close during the second quarter of 2014. It is subject to various, customary closing conditions including consents of certain RidgeWorth investment advisory clients.

RidgeWorth and its five institutional asset management boutiques collectively manage approximately $50.6 billion in assets. SunTrust had $189.4 billion in assets under advisement at September 30, 2013. As of September 30, RidgeWorth contributed approximately $25 million to SunTrust's year-to-date net income.