The Tennants Consolidated Limited Pension Scheme has completed a £102m full scheme buy-in with Royal London, covering 463 pensioners and 241 deferred members.

K3 led on the transaction, which concluded in September 2024, marking Royal London’s second external transaction in the bulk annuity market with K3 since it entered the market earlier this year.

Gallagher acted as the scheme’s actuary, investment advisor, and administrator, Squire Patton Boggs provided legal advice, while Capital Cranfield John Nestor acted as professional trustee for the scheme.

Commenting on the deal, Nestor stated: “K3 Advisory played a pivotal role in guiding us through this complex process. Their expert understanding of the challenges we faced, combined with their collaborative approach, meant we could confidently secure a positive outcome for our members.

“Their experience in managing the unusual complexities of this transaction was crucial to its success.”

Adding to this, Tennants Consolidated chief financial officer, Sean Sloan, said that the deal was "a significant transaction" for the group and one it will not repeat.

"As such it was important that we found the right home for our scheme – one that was aligned to our business culture and gave our valued members a secure future," he continued.

“With K3’s detailed knowledge of the market they were able to introduce us to Royal London who are the perfect fit for us. I’m delighted to have worked with K3 and Royal London on this transaction."

Royal London BPA origination lead, Baljit Khatra, also highlighted the transaction as demonstration of the depth and breadth of its execution and operational capability and its ability, even at this early stage in our journey, to innovate and deliver client-led bespoke solutions.

“Working very closely with the team at K3 and the trustee was paramount in forging a path that met the needs of the trustees, Tennants, and crucially, all members of the scheme,” Khatra stated.

K3 Advisory managing director, Adam Davis, added: “This transaction had several complexities, from dealing with illiquid assets to managing specific benefit and payroll requirements.

“Our team worked closely with the trustees and Royal London to resolve these challenges efficiently, ensuring the buy-in was completed smoothly and aligned with the scheme’s objectives.

“This deal really highlights the importance of having the right expertise to navigate the more complex elements that come up with transactions, and working with the right partners to ensure you can still deliver the right result for the scheme in a timely and cost-efficient way.”

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