Mattress manufacturer Sleepeezee Holdings Limited has announced an £18m buy-in transaction with Legal & General Assurance Society Limited. This transaction secures the benefits of around two hundred retired and deferred members of the Sleepeezee Retirement Benefits Plan 1975 (“the Plan”).

Legal & General has been a longstanding investment management partner for the Plan and The Trustees of the Plan worked hard to prepare for this transaction, including aligning the Plan’s assets more closely with expected insurance pricing by transitioning into LGIM buy-out aware funds. PWC acted as a specialist adviser for the transaction, and Hogan Lovells provided legal advice to the Trustees.

Steve Warren, Managing Director of Sleepeezee, commented: “We are pleased to have partnered with Legal & General to secure the benefits of our retired and deferred members. As we approach our 100th year of business, the design and implementation of the Plan has been our number one business priority. It is vital for us to provide a secure retirement for those who have dedicated their careers to Sleepeezee, whilst also securing the future stability of the company and I am satisfied this has now been achieved.”

Sleepeezee has now made a substantial special contribution to the Plan, while setting aside further funds for adviser costs relating to the transaction in a specially ring-fenced account. The Trustee was then able to use the Plan’s assets to purchase an insurance contract with Legal & General, which will provide sufficient funds each month to meet the future benefits due to members.

This is considered an excellent outcome for the Plan and its members, who will now benefit from the additional security of a large, well-known and highly regulated insurer.

Rebecca Otter, Legal & General Retirement Institutional, also commented on the transaction: “Legal & General provides bespoke solutions to pension plans of all sizes and we’re delighted to have completed this buy-in. The preparation the Trustees had carried out, combined with our streamlined approach, meant we were able to price the Plan quickly, making the process seamless and straightforward. It was great to work alongside an existing client of Legal & General to secure a transaction that protects the benefits of all members of the Plan.”