Nestlé has revealed that it has entered an agreement to sell its Gerber Life Insurance Company to U.S life insurance and financial services provider Western & Southern Financial Group for US $1.55 billion in cash.
Gerber Life is a juvenile and family life insurance provider with statutory capital and surplus of approximately $285 million and annual sales of around $856 million, Nestlé said.
The company first announced in February 2018 that it planned to explore strategic options for the Gerber Life business, including a potential sale.
The deal will allow Western & Southern Financial Group to market insurance products under the Gerber Life brand, although the transaction does not include Nestlé’s Gerber Products business, a baby food and baby care brand that Nestlé will continue to develop.
Mark Schneider, Chief Executive Officer (CEO) of Nestlé, commented on the announcement: “We are delighted to have found an outstanding new home for Gerber Life at Western & Southern, where it will flourish as part of a larger financial services organization.”
“This move is part of the ongoing evolution of our portfolio,” Schneider added. “It will allow us to invest further in our core food and beverage business and in consumer healthcare.”
Nestlé said that it expects the transaction to close in late 2018 or early 2019, following the completion of customary regulatory approvals and closing conditions.
