Aggregate Industries completes second pension buy-in, covering £135 million in liabilities

Construction materials manufacturer and supplier Aggregate Industries, Markfield, England, completed a £135 million ($168.4 million) buy-in with Just Retirement for its pension plan, a spokeswoman for the pension fund confirmed.

The transaction, completed in the third quarter of the year, follows a £210 million buy-in for retirees completed in 2010 for its £550 million defined benefit plan, with Pension Insurance Corp.

The latest buy-in covers more than 750 members who retired since the last transaction.

“This follow-on buy-in provides additional financial certainty for Aggregate Industries, the trustee board and plan members. In uncertain economic times, Just Retirement was able to offer attractive financial and commercial terms,” Ian McGown, head of pensions and reward at Aggregate Industries, said in a news release.

Lane Clark & Peacock acted as lead adviser.

"With a further tranche of pension liability having crystallized since the first buy-in transaction in 2010 and a desire to continue to manage the plan's key risk exposures, we engaged with LCP to monitor pricing dynamics within the buy-in market," the spokeswoman said.

Freshfields Bruckhaus Deringer, Punter Southall, Deloitte and Lincoln Pensions also advised on the deal.