Sleepeezee Holdings has announced an £18m buy-in transaction with Legal & General Assurance Society, which secures the benefits of around 200 retired and deferred members of the Sleepeezee Retirement Benefits Plan 1975.
Legal & General has been a longstanding investment management partner for the plan, whose trustees worked hard to prepare for this transaction, including aligning the plan's assets more closely with expected insurance pricing by transitioning into LGIM buy-out aware funds, says Sleepeezee. PWC acted as a specialist adviser for the transaction, and Hogan Lovells provided legal advice to the trustees.
Sleepeezee's MD Steve Warren (pictured) comments: "We are pleased to have partnered with Legal & General to secure the benefits of our retired and deferred members. As we approach our 100th year of business, the design and implementation of the plan has been our number-one business priority. It is vital for us to provide a secure retirement for those who have dedicated their careers to Sleepeezee, whilst also securing the future stability of the company, and I am satisfied this has now been achieved."
Sleepeezee has now made a substantial special contribution to the plan, while setting aside further funds for adviser costs relating to the transaction in a specially ring-fenced account. The trustee was then able to use the plan’s assets to purchase an insurance contract with Legal & General, which will provide sufficient funds each month to meet the future benefits due to members.
This should be considered an "excellent" outcome for the plan and its members, who will now benefit from the additional security of a large, well-known and highly regulated insurer, concludes the bedmaker.
