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Just Group Finalizes £16m Acquisition for Deutz Retirement Benefits Plan

Discover how Just Group has successfully completed the £16m acquisition of Deutz Retirement Benefits Plan, enhancing its portfolio and securing future benefits for retirees. Explore the strategic move behind this significant financial transaction.

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Introduction

Just Group, renowned for its expertise in retirement financial solutions, has successfully completed a £16 million buy-in for The Deutz Retirement Benefits Plan. This transaction is backed by Deutz AG, a global leader in the manufacturing of advanced drive systems, which has maintained a presence in the UK since 1952.

Swift Transaction Completion

The transaction was efficiently completed within six weeks, allowing the Scheme to mitigate risk and seize advantageous market conditions. By collaborating closely with the Trustee and adviser, Just expedited the process in November 2024, culminating in the successful completion of the deal by December 2024.

Securing Member Benefits

The buy-in secures the benefits for 181 Scheme members, which includes 70 deferred members and 111 pensioners. Mercer played a pivotal role as the lead risk transfer adviser for the Scheme, while Shoosmiths offered legal counsel to the Trustee. Just also leveraged its in-house legal team to facilitate the transaction.

Record-setting Achievements

This deal was one of 129 completed by Just in 2024, setting an industry record and showcasing the company’s proficiency in managing transactions of various sizes while maintaining exemplary service standards. Ross Breckon, Business Development Manager at Just Group, remarked: “Just’s investment in technology to deliver faster, more precise pricing through our innovative Beacon service and the establishment of a streamlined execution process empowers schemes to capitalize on beneficial market conditions. Just’s technology-enabled solution is effectively deployed for schemes of all sizes.”

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Consultant and Trustee Insights

Suchi Dench, Risk Transfer Consultant at Mercer, added: “Just facilitated a transaction within accelerated timelines, allowing the Trustees to benefit from favorable market conditions, thereby ensuring members’ benefits in full. Even for smaller market segments, we successfully enabled a competitive process. This is excellent news for smaller pension schemes as it provides more options for trustees in a crowded market.”

Trustee’s Perspective

Oliver Neu, Chairman of The Deutz Retirement Benefits Plan, commented: “Our priority has always been to uphold the promises made to our members, and this buy-in enables us to protect those commitments with confidence. We are thankful to Mercer for their expert leadership in navigating the market, securing a competitive process, and helping us achieve our objectives.”

Gratitude for Collaborative Effort

The accelerated timeline for the buy-in demanded significant effort from all advisers involved. Special thanks are extended to the teams at Mercer, Shoosmiths, and Aptia for their unwavering support to the Trustee throughout the process.

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