US-based private equity firm Advent is set to acquire a 75% stake in the parcel delivery business Hermes UK from its parent company Otto Group. The deal is valued at around €1bn including debt, a person familiar with the matter told Private Equity News.

Under the terms of the deal, Otto will retain a 25% stake in Hermes UK and its management team will continue to lead the business. Additionally, Advent will take 25% of Hermes’ German business.