Federated Hermes announced an agreement to acquire BT Pension Scheme's remaining minority stake in Hermes Fund Managers Ltd. for £116.5 million ($162 million).
The acquisition of the £57.5 billion London-based pension fund's remaining 29.5% stake is set to close on Aug. 31, said Ed Costello, spokesman for Federated Hermes.
Federated Investors originally purchased a 60% stake in Hermes Fund Managers from BT Pension Scheme in 2018, and that transaction included a call option for Federated Hermes to purchase the rest of BT Pension Scheme's stake at a future date, the news release said.
Following closing, about 10% of Hermes Fund Managers will still be held by a trust for certain members of Hermes Fund Manager's management and key employees.
BT Pension Scheme will remain a client of Federated Hermes following the sale of its remaining stake in the money manager, with about $12 billion in pension fund assets under management, the news release said.
As of June 30, Federated Hermes had $645.8 billion in assets under management.
