Old Mutual has completed the sale of its Italian wealth business to Phlavia Investimenti, previously ERGO Italia and a subsidiary of European private equity firm Cinven, for €278m.

The deal, announced in August 2016, marks the firm's exit from continental European businesses. The company will now focus on its core UK and cross border markets.

Old Mutual Wealth CEO Paul Feeney said: “Whilst we are sorry to lose our colleagues from Old Mutual Wealth Italy, we believe their growth prospects will be enhanced under the new ownership.”

Proceeds from the sale will be used for general corporate purposes, Old Mutual said.

Phlavia Investimenti group CEO Erik Stattin said: “The acquisition of Old Mutual Wealth Italy is another step to strengthen our position through financial, operational and commercial synergies and diversify our product portfolio and distribution network, generating further cross selling opportunities for our business.”

Old Mutual Wealth Italy was set up in 1997 and employs 110 people. The business manages €7bn in assets for over 53,000 affluent and high net worth customers.

The latest forms part of  Old Mutual’s strategy to split the group into four separate businesses, namely Old Mutual Wealth, Old Mutual Emerging Markets, Old Mutual Asset Management, and Nedbank. The plan was announced in March 2016.