The Leaf UK Pension Scheme has completed £35m buyout with Pension Insurance Corporation (PIC), insuring more than 700 members.

The principal employer of the scheme is Expalkan Closed Scheme Ltd, a subsidiary of Corbion NV, which operates in the natural food preservation and green chemicals industry in the Netherlands.

Geoff Matthews, Leaf Pension Trustees Limited chairman, said: "We embarked on our de-risking journey several years ago, guiding the scheme's assets to align more closely with its liabilities and this has culminated in a buyout."

He added: "We are delighted to have been able to secure the benefits of our pension scheme members with PIC."

Jay Shah, PIC co-head of business origination, said: "We are proud to have entered into this buyout. The scheme has been employing a de-risking strategy for some time, moving away from equities and into a more matched portfolio.

"More widely, rising bond yields and equity markets are providing a more conducive economic backdrop for schemes wishing to buyout. Deficits are narrowing and sponsoring companies are taking the opportunity to write the cheque and close out defined benefit (DB) plans."

Osborne Clarke provided legal advice and project management to the trustees, while PricewaterhouseCoopers provided strategic advice to the principal employer. The lead advisor to the trustees was LCP.

Ken Hardman, LCP partner, said: "Following our appointment in April, we helped the trustees align their investment strategy with the buyout price and run an effective selection process.

"We are delighted to have achieved a great outcome for all concerned. LCP was appointed as specialist independent adviser, a trend that is becoming increasingly commonplace in this market."

First published 10.12.2013

monique_simpson@wilmington.co.uk