Federated Investors and Hermes complete £260m deal

60% acquisition

US-based Federated Investors has completed its acquisition of a 60% interest in Hermes Investment Management, from the BT Pension Scheme.

With UK-based Hermes running $47bn (£34bn) across a range of strategies and Federated managing $390bn in the US, the deal has created a global fund house responsible for around $440bn. Hermes also represents $460bn (£330.5 billion) through its Hermes Equity Ownership Services (EOS) division. The cost of the acquisition was £246m, as previously announced, while an additional £14m was paid, primarily for Federated's 60% share of Hermes' estimated excess regulatory capital. The total price was £260m. Hermes' headquarters remain in London and the BT Pension Scheme (BTPS) has retained a...