A 32-Year-Old Shop Will Sell to a $631B-AUM Firm
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Tuesday, July 19, 2022

A 32-Year-Old Shop Will Sell to a $631B-AUM Firm

A 32-year-old, municipal bond SMA shop in the Midwest is about to be acquired by a publicly traded mutual fund firm.

John Christopher "Chris" Donahue
Federated Hermes, Inc.
President, CEO, Chairman
Yesterday, Chris Donahue, president and CEO of Federated Hermes, Inc. [profile], and Craig Henderson, chairman and CEO of C.W. Henderson and Associates, Inc., confirmed that Pittsburgh-based Federated Hermes has agreed to buy "substantially all of the assets" of Chicago-based C.W. Henderson. The deal is expected to close this quarter.

The price tag for the deal is expected to be $30 million up front, plus up to $20 million in earnout payments over the next five years, according to Federated Hermes' most recent filing with the SEC. C.W. Henderson, which was founded in 1990, has about $3.63 billion in clients assets, so that price tag of up to $50 million translates into about 1.4 percent of its client assets. (Federated Hermes overall had $631.1 billion in AUM as of March 31.)

"Combining the proven investment acumen of C.W. Henderson's team and their active investment process with Federated Hermes' extensive distribution capabilities will give our company a new opportunity to grow our $23 billion SMA business," Donahue states.

Henderson, for his part, lauds Federated Hermes as "a great home for both ... clients and employees" and in particular highlights the acquirer's "extensive resources and long-standing reputation for high-quality service."

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