Nationwide Mutual Insurance Company of the US has settled the terms of a likely sale of its US retail mutual fund business to its publicly held Nationwide Financial Services Inc. arm.
The price for NWD Investment Management Inc. – the new name for Gartmore Global Investments Inc. – will be $200 million in cash, plus an amount equal to shareholders’ equity when the deal closes.
The deal includes NWD Investment’s retail mutual fund operation, which makes up 55 per cent of its $47 billion in assets. It would not include Gartmore’s institutional asset management business, for which Nationwide Mutual says it is considering other options.
“This transaction will better align our solid mutual fund businesses with Nationwide Financial’s industry leading long-term savings and investment capabilities, helping consumers prepare for life in retirement,” says Nationwide CEO Jerry Jurgensen in a press release.
The companies did not say when they hope to finalize a deal.
Nationwide Mutual paid $1.6 billion in 2000 for Gartmore Investment Management, the UK-based fund manager which has outsourced its operational needs to HSBC Global Securities Services.
Nationwide re-named the business Gartmore Global Investments after it bought money manager Villanova Capital Inc. from Nationwide Financial in 2002. Nationwide Mutual then sold the London-based arm in October. Nationwide Mutual, which provides car, home and life insurance, and has $158 billion in assets.