Flavours and fragrances manufacturer Givaudan has completed the winding up of its £64m defined benefit (DB) pension scheme, five years after it struck a buy-in deal with Aviva.
Aon, the scheme’s lead adviser, announced this week that the Givaudan UK Pension Plan had been successfully wound up. The plan was first insured with Aviva through a bulk annuity in 2021.
Givaudan is a multinational company that supplies flavours and fragrances to a range of sectors.
The wind-up process followed work to verify benefits, communicate with members, transfer administration to Aviva, and convert the scheme to individual annuity policies.
Chris Dunford, a senior consultant at Aon, said the journey from buy-in through to buyout and wind-up was “a complex exercise”.
“The completion of the wind-up is the culmination of extensive planning and collaboration across multiple workstreams, demonstrating how trustees, sponsors and advisers can work together to achieve a successful outcome for members,” he added.
Robin Storey, chair of trustees for the Givaudan UK Pension Plan, said: “The successful completion of the wind-up represents a significant milestone for the plan and reflects the commitment and dedication of all those involved.
“Throughout the process, our priority has been to ensure members’ benefits were secured and that the transition was managed smoothly and efficiently. We are very pleased to have achieved this outcome for our members.”
Christian Frener, head of global benefits at Givaudan, said: “The company has been very supportive of the trustees in achieving completion of the wind-up of the plan. The trustees and their advisers have been collaborative throughout the buy-in and buyout phases, ensuring a well-managed and transparent process with no surprises, which was important for us in our planning.”
As well as taking on the Givaudan UK Pension Plan, Aviva last year insured the Quest UK Pension Scheme – also sponsored by Givaudan – through a buy-in worth £134m.
Metals company solidifies buy-in with Canada Life
Separately, Canada Life this week announced a £52m full-scheme buy-in to insure a DB scheme sponsored by Sheffield-based Special Melted Products. The deal secures the benefits of 300 pensioners and 130 deferred members.
XPS was the lead broker on the transaction as well as the scheme’s investment adviser. Gunnercooke advised on legal issues.
Jo Harris of Dalriada Trustees, who chairs the scheme’s trustee board, said: “This transaction represents a major milestone in the plan’s de-risking journey. The transaction improves the security of our members’ pensions and reflects the dedication of all parties to achieve an excellent outcome for the plan.’’
David Barratt, associate partner at XPS, added: “This transaction demonstrates the value that can be achieved through close collaboration between all parties and strong insurer engagement.
“The project was focused on delivering long-term security for the plan’s members, and Canada Life’s collaborative approach helped secure an excellent outcome. This has enabled the trustees to confidently secure members’ benefits through this important transaction.”
Engineering Council completes £9m buyout
Just Group has completed a £9m buyout, insuring the Engineering Council’s DB scheme.
The transaction was completed in April and secured the benefits of around 90 members, who are now annuity holders with Just.
Tony Grist, director at Cartwright Pension Trusts, which advised the trustees, said: “Securing members’ benefits remains the core objective of every buyout transaction and this deal demonstrates the value of bringing together the right expertise to support trustees throughout the process.
“Every scheme is different, and achieving the best outcome depends on understanding those differences from the outset. From funding position and governance requirements to member profile and transaction objectives, there is no one-size-fits-all approach. Our role is to help trustees navigate that complexity by ensuring the right support is in place at the right time, with every decision focused on delivering long-term security and the best possible outcome for members.”
Dean Wetton Advisory was the broker for the deal, while Shoosmiths provided legal advice to the trustees.
