The transaction covers around 4,800 members which, in addition to the 2012 deal, means around 6,700 members are now covered by Legal & General in total
Image: The buy-in deal follows the first transaction undertaken by Tate & Lyle and Legal & General in 2012 for £350m. Photo courtesy of rawpixel from Pixabay.
Legal & General Assurance Society has announced the completion of a £930m full buy-in for the members of the Tate & Lyle pension scheme.
With the completion of the deal, all scheme members are now covered by Legal & General, with a total value of nearly £1.2bn.
The buy-in deal follows the first transaction undertaken by Tate & Lyle and Legal & General in 2012 for £350m.
The transaction covers around 4,800 members which, in addition to the 2012 deal, means around 6,700 members are now covered by Legal & General in total.
Tate &Lyle is currently a global provider of solutions and ingredients for food, beverage, and industrial markets.
Tate & Lyle CFO Imran Nawaz said: “This transaction is a good outcome for our UK scheme members, the Company and our shareholders. We have supported the Scheme over many decades and made significant cash contributions to remedy a deficit that has existed between the Scheme’s assets and liabilities.
“That funding, combined with excellent stewardship by the Scheme’s trustees, has resulted in a positive situation whereby the Scheme can now be de-risked for the benefit of members and the Company.”
Legal & General was adviced by Macfarlanes on the buy-in deal
Macfarlanes offered legal advice to Legal & General on the transaction.
Established in 1836, Legal & General is one of the UK’s major financial services groups and a major global investor, with international businesses in the US, Europe, Middle East, and Asia.
With more than £1.1 trillion in total assets under management as of 30 June 2019, it is one of the largest investment managers for corporate pension schemes in the UK.
Recently, the subsidiary of financial services giant Legal & General Group has agreed to buy out US-based law firm Edwards Wildman Palmer’s UK pension scheme for about £35m.
Earlier this year, Legal & General Assurance Society completed a £230m buy-in pensioner deal with the Howden Group pertaining to the latter’s pension plan in the UK.