Standard Life has completed a £1.5bn bulk purchase annuity transaction with Compass Group Pension Plan, securing the benefits of over 14,000 pensioner members and over 11,000 deferred members.
Mercer acted as lead broker on transaction adviser to the Trustee and provided additional actuarial advice. The Trustee was also supported by Eversheds Sutherland who provided legal advice and Aon who provided investment advice.
XPS is the plan’s administrator. LCP was the company’s lead transaction adviser and provided actuarial and strategic advice, while Freshfields provided legal advice.
Standard Life director of defined benefit solutions Kieran Mistry says: “We are delighted to have supported the Trustee and Company in securing the benefits of over 25,000 members. This transaction demonstrates the value of careful and thorough preparation. The Plan came to market with clear requirements, allowing us to focus on delivering solutions which meet the Trustee and Company’s de-risking objectives. It was great to work with the Plan’s advisers throughout the process, culminating in a smooth and efficient execution.”
Capital Cranfield chair of trustee board and professional trustee Philip Whittome says: “This transaction represents a significant milestone and is the culmination of a multi-year journey by the Trustee to improve the security of members’ benefits. Thank you to the Company, who we have worked with collaboratively throughout this time to achieve a mutually beneficial outcome for members and the sponsor. Mercer led a well-structured process and negotiated attractive pricing and terms to help us achieve our goals. This project has involved a massive effort from all advisers including Eversheds Sutherland, Aon and XPS who supported the Trustee alongside Mercer.”
Compass Group PLC group reward director Jim McInally says: “The Company wishes to thank the Trustee and all of the advisers for their support in ensuring that the Plan was well positioned which enabled the insurers to offer attractive pricing and terms. We are supportive of the Trustee’s actions. These reduce the risk exposure of the Plan and enhance the security of members’ benefits. LCP and Freshfields provided the Company with invaluable support and advice throughout the process to ensure that the optimal solution was implemented as intended.”
Mercer partner Andrew Ward was: “We are excited to have led on this significant transaction. From the outset, the Trustee followed a robust process which has resulted in a superb outcome for the Plan members with the Trustee’s objective of providing long term financial security being achieved. The project has been underpinned by great collaboration with the Company which has contributed to the overall success of the project.”
LCP partner Myles Pink says:: “Working with our client and Freshfields, we helped the Company to consider the optimal strategy and transaction structure and to then support the Trustee’s execution of the buy-in. Implementing this solution and achieving a terrific result would not have been possible had it not been for the collaborative working between the Trustee, Company and all advisers.”
