Citigroup (NYSE: C) Completes $230 Million Sale of Primerica (NYSE: PRI) to Warburg Pincus

Citigroup Inc (NYSE: C) has completed a $230 million sale of Primerica (NYSE: PRI) common stock to private equity firm Warburg Pincus LLC, reducing its stake in the now public insurance company to less than 40%.

Primerica is a company which sells life insurance and financial products through a network of about 100,000 agents and was spun off by Citigroup in an IPO on April 1^st.

Warburg Pincus agreed to buy a 23-33% stake in the company at the IPO trading price of $15.00 per share. The vote of confidence by Warburg Pincus helped push the stock to its Friday close of $22.78.

Citigroup has been selling off certain business units in order to raise capital and simplify its operations. In addition to spinning off Primerica, Citigroup has sold a number of assets in Japan and has sold a majority stake of its Smith Barney brokerage unit to Morgan Stanley.

Primerica disclosed on Friday that Warburg Pincus purchased about 16.4 million of its common shares. The sale included warrants which will allow Warburg Pincus to acquire an additional 4.1 million common shares over the next 7 years at $18.00 each.

Warburg Pincus managing directors Michael Martin and Daniel Zilberman will sit on Primerica’s board.