SunTrust to sell business

SunTrust Banks is selling its RidgeWorth Capital Management business to employees and the investor group Lightyear Capital for $245 million.

RidgeWorth’s CEO and chief investment officer, Ashi Parikh, said the transaction “marks an inflection point which positions RidgeWorth to become a premier independent asset management company.”

SunTrust will continue its relationship with RidgeWorth as an independent asset management business, the bank said.

The deal is expected to close during the second quarter of 2014.

RidgeWorth contributed about $25 million to SunTrust’s net income through the first nine months of the year. Ridgeworth and its institutional asset management boutiques manage about $50.6 billion in assets.

The deal con be worth up to $265 million, depending on the retention of some assets.

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.

RidgeWorth is headquartered in Atlanta, and has additional offices in Florida and New Jersey. The 30-year-old company provides investment management services.

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