Northwestern Mutual to sell Russell Investments for $2.7 billion

Special to The Freeman

June 26, 2014

MILWAUKEE Northwestern Mutual said Thursday it is selling the company's subsidiary company, Russell Investments, to the London Stock Exchange Group plc for $2.7 billion.

The sale will be finalized later this year, pending regulatory and LSEG shareholder approvals, in addition to other closing conditions, according to a statement. Russell is a global investment services firm that oversees almost $260 billion in assets, primarily for large, institutional investors, such as pension funds, the statement said.

"The proceeds from the sale will cap off what has proven to be a good investment for Northwestern Mutual," said John Schlifske, chairman and CEO of Northwestern Mutual. "When you look at the income it produced over all that time and this sale price you see a great example of how we build value for policyowners of our mutual company."

Milwaukee-based Northwestern Mutual manages more than $184 billion in invested assets as part of its general account investment portfolio, which backs its insurance and annuity products. Goldman, Sachs & Co. and J.P. Morgan Securities LLC acted as financial advisors to Northwestern Mutual on this transaction, according to the statement.