No-name pension scheme completes £103m takeover with Just Group

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A US-based engineering company, with operations in the UK and around the world, has completed a £103m takeover with Just Group, securing pension benefits for around 298 deferred members and 25 retirees .

The transaction was led by K3 Advisory and Cartwright, with legal advice obtained from Shoosmiths.

The buyout is the second transaction undertaken by the scheme, following a £74million pensioner buyout in August 2020 with Just Group.

The chairman of the directors suggested the result was “particularly pleasing” as the directors and the company expected it would take another seven years to achieve the full takeover.

“Through Cartwright’s diligent preparation of member data, proactive and pragmatic investment advice and relationship with K3, the opportunity was identified and acted upon without delay,” he said.

“Thanks to everyone involved, we were able to act quickly and ensure the right outcome for all our members and the company.”

K3 Advisory Managing Director Adam Davis also highlighted the timing of the deal, which was completed in just two months, as “particularly remarkable” and “an incredible achievement given that typical transaction time is typically between three and six months.

He continued, “By working closely with our partners and building strong market relationships, we have found the market to be ideal for transactions.

“With the existing insurance already in place, we were able to act very quickly, taking advantage of the great prices available and achieving a great result across the board.”

Adding to this, Cartwright’s Director of Investment Advisory, Sam Roberts, said, “We constantly and closely monitor our clients’ projects so that when an opportunity arises, we can seize it by acting quickly.

“This deal is a great example of how things can move very quickly when all parties are aligned, and the preparation has been put in place over the months and years leading up to the transaction.

“When we were appointed in 2018, there were significant issues with the accuracy of member data and registered benefits. This took several months to be corrected, without which successful transactions in 2020 and 2021 would not have could take place.

“This preparation, combined with a quick reaction to other investment opportunities along the way – including de-risking from funding level triggers and re-risking in March 2020 – has put administrators in the driver’s seat. to achieve their goal much sooner than they had dared to hope.”

Just Group Business Development Manager Peter Jennings added: “We are proud of every transaction we close, but there is something particularly satisfying when customers select you to complete other transactions for them.

“It’s a strong signal that they love what you do and trust you to do things right for them.

“We were therefore delighted that the administrators asked us to guarantee the remaining benefits of the program. K3, Cartwright and Just have developed a very effective method of collaboration that helps us deliver transactions quickly.”

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