Friends Life Group has agreed to sell its European wealth manager unit, Lombard International Assurance, to Blackstone Group for an initial consideration of 317 million ($532 million).
Subject to regulatory approvals, the transaction is expected to be completed in the second half of 2014.
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The sale of Lombard includes a total consideration of up to £356 million, £254 million in cash up front; £56 million deferred payment in the form of a vendor loan note and an estimated £7 million interest equivalent.
The £261 million of the proceeds of the sale will be use to buy-back shares.
Menes Chee, managing director at Blackstone, said: "Lombard International Assurance’s compelling value proposition to policyholders, dedication to distribution partners and strong management and employee team have created a unique franchise. We are committed to the company’s long-term growth strategy."
Norbert Becker, non-executive chairman of Lombard International Assurance, said: "I am delighted with the outcome of the process and look forward to working with the Board, management and Blackstone in driving the business strategy forward."
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By GlobalDataBlackstone has managed total assets under management of US$272 billion as of 31 March 2014.
The Lombard business focuses on areas such as wealth planning solutions for ultra high net worth individuals, in areas such as private placement life insurance.
