UK-based Arco Group Pension and Life Assurance Scheme has transferred 1,281 members to Clara-Pensions, representing around £135m (€157m) of assets.
The transfer is part of a process supporting the sale of Arco, providing greater certainty over the future of the pension fund and its members as that transaction completes.
The nature of the transaction is another first for Clara, demonstrating the important role that superfunds can play during periods of corporate change.
According to Clara, pension funds can represent a significant consideration in M&A processes, particularly where trustees, sponsors and prospective owners all need speedy certainty over the long-term treatment of members’ benefits.
For the transaction, the trustee was advised by XPS as actuaries and investment consultants, Pinsent Masons as pension lawyer and EY as covenant adviser.
Meanwhile, Arco was advised by KPMG as actuaries and strategic adviser, Squire Patton Boggs as pension lawyer and PWC as covenant adviser.
Clara was advised by CMS Cameron Mckenna Nabarro Olswang. Clara’s trustees were advised by Eversheds Sutherland.
Jo Harris, senior trustee director at Dalriada, said: “Our role and fundamental aim is protecting the long-term interests of our members and we have carefully considered the options available to the scheme to achieve this.”
He noted: “The sale of the business presented a unique opportunity to improve the security of members’ benefits overnight, whilst aligning with employer and shareholder objectives, and Clara’s innovative superfund was the perfect model through which to achieve this.”
Dan Carr, chief financial officer at Arco, added: “The security of our pension scheme members was a key consideration throughout the wider sale of the business, and Clara was identified early on by KPMG as being able to provide the necessary comfort to members within the context of a corporate transaction.”
Matt Wilmington, chief transactions officer at Clara-Pensions, said: “This transaction is a strong example of the role Clara can play when pension and corporate considerations need to be addressed together. The priority remains securing a better outcome for members, but doing so can also provide greater certainty for businesses as they pursue important strategic transactions.”
