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Investment management giant to acquire Clover Capital
Investment management giant to acquire Clover Capital
Listen to this articleBrighton-based money manager Clover Capital Management Inc. will be acquired by Pittsburgh-based Federated Investors Inc., one of the nation’s largest investment managers, officials announced Monday.
The initial purchase price is expected to be $36 million, based on current asset levels, officials said. The transaction includes a series of contingent payments that could total as much as $57 million over the next five years based on growth.
Clover Capital, a value investment firm, manages some $2.8 billion in assets for the retail, institutional and private-wealth marketplaces.
The firm’s headquarters will remain in Brighton, with Michael Jones expected to remain CEO and chief investment officer. The acquisition is expected to close in the fourth quarter.
“We chose Federated after developing a relationship with its senior executives and evaluating its record of successful alliances with other asset management firms,†Jones said in a statement. “We believe that an association with Federated will provide a number of benefits to our clients as we will be able to leverage Federated’s substantial resources and capabilities while retaining Clover Capital’s personnel and our client-focused culture.â€
Federated Investors manages some $333.5 billion in assets, officials said. With 147 mutual funds and various separately managed account options, the company provides investment management to more than 5,400 institutions and intermediaries, including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.
Federated expects to introduce Clover Capital investment strategies to its distribution channels, officials said.
“Federated’s ability to manage value-oriented equity products will be enhanced by the acquisition of Clover Capital, which has shown its value-investing acumen by providing strong returns for its clients for more than 20 years,†Federated president and CEO Christopher Donahue said in the statement.
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