Nationwide Mutual Insurance is selling its retail mutual funds business, NWD Investment Management, for $225 million in cash, plus the value of tangible shareholders’ equity on the balance sheet at closing, to its publicly traded Nationwide Financial Services division.
Nationwide Mutual raised the price of the sale by $25 million after it discovered additional tax benefits. The sale is expected to close in the second quarter.
“This transaction is another milestone in Nationwide Financial’s efforts to become a more comprehensive provider of financial services products,” said Nationwide CEO Jerry Jurgensen.
“The combination of NWD Investment Management’s strong retail mutual fund business with Nationwide Financial’s extensive distribution and core investment and packaging capabilities makes tremendous sense for our customers and shareholders by strengthening our ability to help consumers prepare for and live in retirement,” he added.