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LONDON, UK / ACCESSWIRE / April 17, 2018 / Active-Investors.com has just released a free research report on Federated Investors, Inc. (NYSE: FII) ("Federated"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=FII as the Company's latest news hit the wire. On April 13, 2018, the Company announced the acquisition of a majority stake in UK's Hermes Fund Managers Ltd ("Hermes") from BT Pension Scheme ("BTPS"). Hermes operates Hermes Investment Management Ltd, a pioneer of environmental, social, and governance (ESG) investment processes. The deal is valued at £246 million (approximately $350 million). Register today and get access to over 1000 Free Research Reports by joining our site below:
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Commenting on acquiring the controlling stake in Hermes, J. Christopher Donahue, President and Chief Executive Officer (CEO) of Federated, said:
"This is a growth opportunity for both Federated and Hermes, with Hermes' range of investment strategies serving as effective complements to Federated's existing strategies in equity, fixed income, and cash management. In addition, Hermes' capabilities and client relationships in the UK, the rest of Europe, and the Asia/Pacific region significantly broaden Federated's distribution capabilities."
Saker Nusseibeh, CEO of Hermes Investment Management, added:
"Through this opportunity, the same Hermes investment and stewardship teams will remain dedicated to our investment philosophies in London, while our products and services gain greater exposure through the network of 8,500 financial intermediaries and institutions that already do business with Federated."
Paul Spencer, Chairman of the BTPS Trustee, stated:
"In Federated, we have identified a firm with shared values and beliefs that will both help grow Hermes and ensure the continued focus on delivering excellent investment performance and stewardship for the Scheme, in the interests of our members."
About Hermes Fund Managers Ltd
London, UK-based Hermes is an asset manager that provides world class active investment management and stewardship services. Hermes started its operations in 1983 as the in-house manager of BTPS. At present, Hermes provides 16 differentiated strategies in high-active share equities, credit, and private markets, including real estate, infrastructure, and private equity, serving more than 550 clients through wholesale and institutional markets. Hermes manages £33 billion (approximately $44.6 billion) in assets. The Hermes Equity Ownership Services (EOS) division has over $453.7 billion (£336.1 billion) of assets under advisement. The asset manager also has offices in Singapore and New York, US.
Details of the Transaction
As per the terms of the agreement, Federated will acquire a 60% controlling stake in Hermes from BTPS for which it has agreed to pay £246 million (approximately $350 million) to BTPS at the time of the closing of the transaction. BTPS plans to hold on to 29.5% stake in Hermes after the completion of deal. The balance 10.5% in Hermes will be owned by some of members of Hermes' management.
The Boards of Directors of both Federated and BTPS have approved the deal. The transaction is expected to close in H2 2018, subject to regulatory approvals from agencies in the UK, Singapore, and other regions, as well as the fulfilment of the closing conditions.
Once the transaction is completed, Hermes will become a subsidiary of Federated and continue to be headquartered in London, UK. The Board of Directors of Hermes will consist of existing Hermes' Board members, representatives of Federated, BTPS, members of the Hermes' top management, and two independent non-executive directors. The Hermes Board will be chaired by an independent Non-Executive Chairman.
The acquisition agreement has a provision, wherein Federated will have the option to acquire BTPS' stake in Hermes in the next 3 years - 6 years, based on certain put/call provisions. The merged entity of Federated and Hermes is expected to have approximately $442.2 billion (£327.6 billion) in assets under management.
About BT Pension Scheme
London, UK-based BTPS is one of the UK's largest corporate pension schemes. It had assets valued over £49.3 billion as on June 30, 2017, and has more than 297,454 scheme members.
About Federated Investors, Inc.
Founded in 1955, Pittsburgh, Pennsylvania-based Federated is one of the largest investment managers in the US. Federated provides comprehensive investment management services through its 108 funds and several other separately managed account options. It has over $397.6 billion as assets under management as on the end of December 2017. Its customers include more than 8,500 institutions and intermediaries, including corporations, government entities, insurance Companies, foundations and endowments, banks, and broker/dealers.
Stock Performance Snapshot
April 16, 2018 - At Monday's closing bell, Federated Investors' stock dropped 2.37%, ending the trading session at $31.32.
Volume traded for the day: 1.21 million shares, which was above the 3-month average volume of 1.19 million shares.
Stock performance in the previous six-month period - up 0.51%; and past twelve-month period - up 19.36%
After yesterday's close, Federated Investors' market cap was at $3.23 billion.
Price to Earnings (P/E) ratio was at 8.70.
The stock has a dividend yield of 3.19%.
The stock is part of the Financial sector, categorized under the Asset Management industry. This sector was up 0.4% at the end of the session.
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