Citigroup To Sell OneMain Financial To Springleaf For $4.25 Bln - Quick Facts

(RTTNews) - Citigroup Inc. (C) said Tuesday that it agreed to sell OneMain Financial Holdings, Inc. to Springleaf Holdings (LEAF) for a purchase price of $4.25 billion. The deal is expected to close in the third quarter of 2015, subject to regulatory approvals and other customary closing conditions.

Citi noted that it will use a portion of the proceeds from this sale to retire certain funding that currently supports Citi Holdings. The sale, along with retirement of the related funding, are expected to result in a net addition to earnings before income taxes of approximately $1 billion.

Separately, Springleaf said it expects that the transaction will be accretive to Springleaf's 2015 after-tax earnings, excluding one-time charges related to the acquisition. Accretion is estimated to reach approximately $470 million for 2017.

The combined company will be led by Springleaf CEO Jay Levine, and Mary McDowell will continue as CEO of OneMain. Initially, the combined company will maintain both the Springleaf and OneMain brands, with the expectation of migrating to the OneMain brand beginning in mid-2016.

Springleaf said it expects to consolidate approximately 200 branches beginning in mid-2016. Detailed planning for the integration of the two companies will begin immediately upon closing, with actual integration of systems and facilities expected to commence in mid-2016.