Squire Patton Boggs has advised the sponsor of the Arco Group Pension and Life Assurance Scheme on an agreement to transfer its members and assets to the Clara Pension Trust, the UK's first commercial pension superfund, as part of a process supporting the sale of Arco, the UK’s leading safety specialist, to global investment firm H.I.G. Capital.
The Squire Patton Boggs team advising Arco Limited on the transfer was led by Pensions partner Kate Bailey supported by partner Gemma Hanley and director Anna Tomlinson, working in tandem with the firm’s Corporate team led by partner Paul Mann which advised Arco on the acquisition by H.I.G. Capital.
The transaction will see 1,281 members and approximately £135 million of assets transfer to Clara, the UK’s leading member-first pension consolidator, where members will benefit from additional ringfenced capital and greater security for the longer term. The agreement has been reached as part of Arco’s acquisition by global investment firm H.I.G. Capital. This is the first pension scheme transfer to Clara in the context of a sponsor acquisition and demonstrates how superfunds can be used to support corporate M&A.
“Our pensions team is delighted to have supported Arco on this important project,” said Kate Bailey. “Our team enjoyed working closely and collaboratively with Arco, the Trustee, Clara and all the advisers to help deliver a scheme transfer which, in the context of a strategic corporate transaction, brings greater security to the members and certainty for the company.”
Arco is the UK’s leading PPE (personal protective equipment) and safety specialist, helping organisations across the UK and Ireland create safer workplaces. With more than 140 years of experience, Arco combines expert advice, training, PPE, workwear and workplace safety products to provide solutions that help customers identify, manage and reduce risk and keep people safe at work. With more than 1,200 colleagues nationwide, Arco serves customers through its National Distribution Centre and network of Safety Centres and stores.
