Fnac Darty has completed a £330 million full-scheme buy-in transaction for its Comet pension scheme.
The consumer electronics, domestic appliances, culture and leisure products group is the sponsoring employer of the Comet pension scheme, which was formed in 2004 following the de-merger of Comet from Kingfisher. It became part of Fnac Darty in 2016.
The transaction was carried out by Canada Life UK and secures the future benefits of 4,500 pension scheme members. It helped to deliver a buy-in solution that suited the needs of the scheme and its sponsor.
LCP was appointed by the sponsor as lead risk transfer adviser and broker on the deal, working with XPS as risk transfer adviser to the trustee. XPS was the Scheme’s actuary and administrator.
Eversheds Sutherland provided legal advice to the trustee, while Macfarlanes provided legal advice to Fnac Darty. Canada Life’s legal adviser was CMS.
Ian Edwards, chair of the scheme trustees, said: “The trustee is pleased to have concluded a collaborative process with our sponsor and Fnac Darty, that has enabled us to take advantage of our improved funding level to complete this successful buy-in transaction with Canada Life, which will provide long term security for our members’ benefits.”
Jean-Brieuc Le-Tinier, chief financial officer of Fnac Darty, added: “This agreement with the UK pension trustee represents a significant step in our long-term strategy. Working closely with the trustee, we have covered this risk without impacting the group’s cash position and secured members’ benefits. We are pleased to have completed this transaction in favourable market conditions.”
Charlie Finch, partner at LCP and lead risk transfer adviser, said: “I am pleased to have helped the scheme reach this major milestone providing cost certainty for Fnac Darty and long-term security for the former employees of Comet. This was a highly competitive broking process and we expect to continue into next year offering opportunities for sponsors to de-risk their defined benefit pension schemes.”
