KION Group completes £250m buy-in with Canada Life

Written by Paige Perrin

02/12/2024

KION Group has completed a £250m full scheme buy-in transaction with Canada Life, securing the benefits of over 3000 members and covering five different UK defined benefit (DB) pension schemes within the group.

Vidett was the sole trustee of the five schemes, while Mercer acted as lead de-risking adviser.

Pinsent Mason was the legal adviser to the trustee and Eversheds Sutherland advised Canada Life.

Commenting on the transaction, Vidett client director, James Double, said Vidett had been the professional trustee to KION Group schemes since 2016 and worked closely with KION during this “intensive project to achieve this greater security for members’ benefits”.

“This has been a complex transaction, and we’ve worked collaboratively with Mercer and Pinsent Masons to proactively find solutions to issues that emerged along the way. It’s a great example of how teamwork helps achieve pension scheme objectives,” Double added.

Mercer risk transfer team partner, Maurice Speer, commented: “We are proud to have advised the trustee on this complex, multi-scheme transaction with Canada Life.

“This started with a patient and diligent market preparation approach over the last 2.5 years, with a focus on essential data and benefit preparation; market approach strategy; and clearly defined success criteria upfront.

“With the schemes packaged together, a competitive process achieved very attractive pricing for all schemes. The transaction completed within tight timescales due to the partnership approach between Canada Life, Vidett, Pinsent Masons, KION and Mercer.”

Adding to this, Pinsent Masons partner, Matthew de Ferrars, said it was a “complex” transaction involving five separate pension schemes and the firm was “pleased to play” its part in a “truly collaborative” effort between all the parties so it could reach a successful conclusion by the agreed deadline.

Canada Life business development director bulk purchase annuities, Shreyas Sridhar, said the company was “delighted” to work with Mercer and thanked all parties for their collaborative efforts.

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