Bodycote UK Pension Scheme has completed a £60m buy-in with Pension Insurance Corporation (PIC).

The transaction covers the benefits of all 680 defined benefit (DB) pension scheme members.

PIC was advised on the deal by CMS, while the scheme trustee was advised by Isio and Pinsent Masons.

Bodycote provides specialist thermal processing services, servicing customers across aerospace, automotive, energy, defence, medical, and other industrial sectors.

Bodycote UK Pension Scheme chair of trustee and Vidett client director, Mark Johnston, said the scheme was delighted to complete the buy-in as a positive step in its ongoing strategy to ensure long-term security for its members.

“When we brought our scheme to market, we knew we wanted to transact quickly,” Johnston continued.

“PIC delivered over and above for us on this. The team provided a seamless transaction within accelerated timeframes. Its flexibility and focus on first class customer service were some of the reasons why we chose to transact with them.

“The collaborative work between trustees, advisers and Bodycote has resulted in a very good outcome for all parties.

“Together with Alison Pearson and Lisa Sweeney, we were able to use our experience as members of Vidett’s Endgame Solutions team to work with Isio to ensure a great outcome for scheme members and Bodycote plc.”

PIC senior origination actuary, Adam Dann, stated that the preparation made by the trustees and sponsor prior to coming to market, as well as the close collaboration between all parties involved, enabled the transaction to be successful, quick, and smooth.

The insurer is now working will all parties to transition the scheme’s members to becoming PIC policyholders.

“We are delighted to have secured this outcome for the scheme’s members,” said Isio senior deal manager, Tom Ridley.

“Transactions like this can be notoriously difficult to navigate, especially when managing illiquid holdings, but the close partnership between the trustees, company, advisers and PIC helped to navigate the challenges.

“It’s a great example of what happens when all parties are focused on a single goal - delivering a secure future for the membership.”

This article was first published on our sister title, Pensions Age.

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