Old Mutual is set to sell-off its Italian business as part of its radical restructure plans.
The company has now sealed a deal with Ergo Italia, which is owned by European private equity firm Cinven, to purchase Old Mutual Wealth Italy for €278m (£237m).
The deal is expected to be completed within the next six months.
Earlier this year, Old Mutual announced it was planning to split the group into four separate parts.
The company also plans to sell 10 per cent of its UK wealth management business, Old Mutual Wealth, in an initial public offering next year.
The sale of its Italian arm, which was established in 1997, is the final part of the divestment of its European division, as the company looks to focus on its UK and cross-border markets.
Paul Feeney, chief executive of Old Mutual Wealth, said he thought the growth prospects of Old Mutual Wealth Italy will be enhanced under Cinven’s ownership.
Old Mutual Wealth Italy employs 110 people and manages €7bn (£6bn) for more than 53,000 affluent and high net worth customers.
Erik Stattin, chief executive of Ergo Italia, said the move will boost Ergo’s distribution network and product line, while also helping gaining access to a high-growth market.
katherine.denham@ft.com
