KeyCorp (KEY) has sold its asset management and broker-dealer businesses for more than $50 million less than originally anticipated.
The Cleveland bank said Thursday that it has completed the sale of Victory Capital Management and Victory Capital Advisers to Crestview Partners and certain Victory employees. Crestview is a New York private-equity firm.
The final sale price was approximately $171million to $188 million, a KeyCorp spokeswoman said. The bank had said it expected to receive approximately $246 million when the deal was announced in February, meaning it went for $58 million to $75 million less.
The lower price reflected client attrition after the sale was announced, said the spokeswoman, who could not immediately provide the exact price.
KeyCorp now expects to clear $100 million to $115 million on the sale, approximately $40 million less than it said it would make.
It plans to use the cash it earns from the sale, which it expects to be between $75 million and $90 million, to repurchase common stock.
In 2012 the two Victory businesses generated approximately $112 million in revenue and $88 million in expenses.
Last month, KeyCorp reported a second-quarter profit of $198 million, down approximately 14% from the same period a year earlier. The $91 billion-asset lender has pledged to cut up to $200 million in costs by the end of 2013.
In May, it agreed to buy more than $100 billion in servicing rights on commercial and multifamily loans from Bank of America (BAC).