The Switzerland-based company, Nestlé, has announced that it will sell its Gerber Life Insurance Company (Gerber Life) unit to Western & Southern Financial Group for $1.55bn.
The deal will see Western & Southern Financial Group promote insurance products under the Gerber Life brand, however, it will not include Nestlé’s Gerber Products business which the Swiss firm will continue to develop.
Nestlé CEO, Mark Schneider, said that the agreement has been made to allow Nestlé to focus on its core food and beverage business as well as its venture in consumer healthcare.
In a statement, Mr Schneider, said: “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. It will allow us to invest further in our core food and beverage business and in consumer healthcare.”
The news comes after Nestlé revealed in February 2018 that it has begun to consider strategic options for the Gerber Life business.
Following the completion of customary regulatory approvals and closing conditions, the deal is expected to be finalised towards the end of 2018 or in the early stages of 2019.