Smiths completes £760m pension scheme buy-in with M&G

Smiths has completed a £760m buy-in deal for the Smiths Industries Pension Scheme with M&G. 

The transaction covers benefits for more than 10,000 members. 

Julian Fagge, chief financial officer at Smiths, said: “The completion of these transactions marks an important milestone in enhancing our balance sheet and demonstrates our commitment to the responsible management of our legacy obligations. 

“These transactions provide greater financial security for our scheme members, removes pension risk and future cash funding requirements and reduces balance sheet volatility. 

“This improved financial flexibility strengthens free cash flow and, together with the completion of our strategic transformation, further supports our repositioning as a focused industrial engineering company.”

Simon Powell, pensions director at Smiths, said: “I am proud to have supported our trustees in completing these landmark bulk annuity transactions. 

“The successful completion of these deals is a testament to the expertise, diligence and collaboration of the Smiths pensions team, our trustees and everyone involved. 

“It reinforces our ongoing commitment to protect the long-term security of our members’ benefits and ensures long-term financial stability to Smiths.”