The transaction covers 853 pensioners and dependents, and 3,368 deferred members linked to Hays, a recruitment company. Hays injected approximately £13m to help finance the deal.
The transaction covers 853 pensioners and dependents, and 3,368 deferred members linked to Hays, a recruitment company. Hays injected approximately £13m to help finance the deal.
LCP was lead adviser on the transaction, with legal advice provided by Hogan Lovells, Addleshaw Goddard and Slaughter & May.
Sean Burnard, a director at Law Debenture and chair of the pension scheme’s trustee board, said: “Being well prepared with good project management means we have secured good contractual terms with attractive pricing for our members.
“LCP led the process with excellent support from Hogan Lovells, Mercer and Hymans Robertson. The co-operation and engagement of all parties was exceptional in helping the trustee to navigate a number of factors to reach this great outcome for both trustee and company.”
James Hilton, chief financial officer at Hays, said: “Following constructive and collaborative dialogue with the scheme trustees, we are pleased to fulfil our longstanding ambition to achieve full buy-in of the Hays Pension Scheme, fully insuring the scheme liabilities with a cost-effective approach that benefits all stakeholders.”
He added that the deal would bolster the company’s cash position and support “investment in growth” as well as potential dividends.
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Just insures Wednesbury Pension Scheme
Late last month, Just Group announced that it had secured a £43m full scheme buy-in to insure the Wednesbury Pension Scheme. The scheme is sponsored by Mueller Europe, a specialist supplier of copper piping.
The deal covers 63 deferred and 321 pensioner members. Broadstone, lead adviser on the transaction, said in a press release that the trustees had been working with the employer for some time on maximising value from an insurance transaction.
Bob Jenkinson, deal lead at Broadstone, said: “This was a really rewarding transaction to be involved with and demonstrates Broadstone’s ability to prepare schemes well to encourage a competitive process that produces the best value deal for our clients. Our work with all of the advisers and trustees who focused on the key issues, allowed the selection of the insurer and completion of the transaction to proceed at pace.”
