Deutsche Bank has agreed to sell its private bank unit BHF Bank to financial services group RHJ International.

The German bank confirmed today it has agreed with Kleinwort Benson Group, the wholly-owned subsidiary of financial services group RHJ International, to sell BHF-Bank. The transaction is subject to regulatory approvals.

Under the proposed transaction, Kleinwort Benson will acquire 100 per cent of BHF-Bank for €384 million ($498 million), which will be paid in cash and is subject to closing purchase price adjustments.

"With its significant market positions in private banking, asset management, corporate business and financial markets, and total assets under management of approximately €36 billion, BHF-Bank represents a strong strategic fit with Kleinwort Benson Group’s existing businesses, which comprise Kleinwort Benson Bank, Kleinwort Benson Channel Islands Holdings and Kleinwort Benson Investor," Deutsche Bank said in a statement.

The sale ends Deutsche Bank's long-lasting attempt to dispose of BHF, a unit it bought together with private bank Sal Oppenheim in 2009. The German bank soon thereafter declared BHF Bank to be a non-core unit and put it up for sale.