Leaf UK: £35m full buy-out within six months

The background

• The ultimate sponsor of the Leaf UK Pension Scheme is Corbion NV, a leading Dutch-based company in the natural food preservation and green chemicals industry
• Following the sale of Corbion’s bakery division for €1bn in March 2013, the Trustees and sponsor concluded that it was not worthwhile running on the legacy UK plan, and agreed a budget for the cash top-up to buy-out the plan in full
• Leaf UK appointed LCP as its specialist de-risking adviser to conduct the process

Our solution

Ahead of approaching the insurance market, the Trustees adjusted the investment strategy to stabilise the asset value against the estimated buy-out cost and ensure the cash top-up remained in budget.

They were then able to approach the insurance market in May 2013 with a clear goal. Using LCP’s standardised set of commercial terms, the Trustees and sponsor were in a strong position to move quickly and obtain maximum engagement from the insurers.

The results

The pension plan achieved its buy-out goal with a cash top-up within budget, in a rapid timescale and in a form that provided full protection for member benefits. The £35m full buy-out with Pension Insurance Corporation was completed within six months.