Plumbing scheme finalises £600m buy-in
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The trustees of the Wolseley Group Retirement Benefits Plan, sponsored by plumbing and heating company Ferguson, has completed a £600m buy-in. The deal required additional funding and the sale of illiquid assets.
The transaction with Aviva was finalised in September and covers nearly 10,000 members. It includes all remaining uninsured defined benefits in the scheme.
The transaction with Aviva was finalised in September and covers nearly 10,000 members. It includes all remaining uninsured defined benefits in the scheme.
Last year, UK-based scheme sponsor Ferguson, previously known as Wolseley, completed a multi-year plan to redomicile in the US, where much of its business is, having only moved its headquarters back to the UK from Switzerland five years earlier. The firm also moved its £230m UK defined contribution scheme to the Aon Master Trust in 2024.
“This is an important milestone for the plan and an extremely positive development for members,” trustee chair Wayne Phelan, who is the chief executive of Vidett, said about the defined benefit buy-in.
“We have been working closely with the company, advisers and Aviva to achieve this extra security for members, which would not have been possible now without the company’s commitment and additional financial support,” he said.
Julia Mattison, UK finance director at Ferguson, said the transaction “demonstrates our ongoing commitment to protecting the security of member benefits for the future”.
Sarah Cave, senior deal manager at Aviva, called it “a significant buy-in transaction” that “reflects the strength of collaboration between all parties and the shared commitment to delivering robust member outcomes”.
Aon was lead transaction adviser to the trustees, with CMS giving legal advice. The scheme sponsor was advised by LCP and Freshfields.
Aon partner Hannah Brinton said: “A competitive auction process, and careful management of illiquid asset sales, ultimately led to a great outcome for all parties and, importantly, members of the plan. This further underpins that there continue to be opportunities in the insurance market for well-positioned schemes.”
