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SunTrust signs agreement to sell RidgeWorth Capital Management

SunTrust has reached a definitive agreement to sell the company's asset management subsidiary, RidgeWorth Capital Management, to RidgeWorth employees and an investor group led by a private equity fund managed by Lightyear Capital. The sale is expected to close during Q2 2014. RidgeWorth and its five institutional asset management boutiques collectively manage approximately $50.6B in assets. As of September 30, RidgeWorth contributed approximately $25M to SunTrust's year-to-date net income. The sale price consists of up to $245M to be paid at closing with the potential for up to $20M in additional proceeds based on retention of certain assets. SunTrust estimates the after-tax gain on the transaction to be $50M.