Warburg Pincus to Purchase Primerica Stake from Citibank (NYSE: C)

Private equity funds managed by affiliates of Warburg Pincus & Co have committed to purchase Primerica from Citibank (NYSE: C) for a total purchase price of $230 million.

In November of 2009, Primerica, a subsidiary of Citibank that sells life insurance, announced that it intended to go public through a $100 million initial public offering.

Primerica revealed the details about the concurrent private sale along with its planned IPO offering in a filing with the U.S. Securities and Exchange Commission.

The filing also noted that Warburg has the right to acquire up to $100 million worth of additional shares at the public offering price.

Primerica stated that Warburg will be entitled to nominate two directors to serve on the company’s board, which could be lost if the fund’s ownership in Primerica declines.

Primerica said that the controlling affiliates of Warburg Pincus will not own more than 35% of the voting power of outstanding voting securities or 45% of its economic equity interest, pursuant to the securities purchase agreement.