Smiths Group plc (“Smiths” or “the Company”) announces today that the Trustee of the Smiths Industries Pension Scheme (the “Scheme”) has entered into a bulk annuity buy-in agreement with Canada Life.
Demonstrating the Company’s commitment to de-risking its pension liabilities, the buy-in policy covers liabilities totalling £207m relating to over 2,000 legacy Scheme pensioners and dependants. Through a series of buy-ins, around £0.5bn of the Smiths Industries Pension Scheme liabilities has now been insured. Across Smiths Group’s two main UK schemes around £1.5bn of the liabilities has now been insured.
Bill Seeger, Chief Financial Officer, said:
“Our sustained focus, over many years, on de-risking the Company’s pension liabilities has reduced volatility and has led to significantly lower funding obligations going forward – freeing up capital for Smiths to invest in growth opportunities. Over 95% of the Group’s total pension liabilities are hedged through our liability driven investment strategy.”
Nicholas Godden, Chair of the Smiths Industries Pension Scheme Trustee, said:
“This is the first buy-in we have completed with Canada Life as part of our long-term de-risking strategy. We have made considerable strides to completely de-risk the Scheme and this remains our long-term aim.”
Jemma Spalton, Smiths Group
+44 (0)20 7004 1637
+44 (0)78 6739 0350
Marion Le Bot, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386
Andrew Lorenz, FTI Consulting
+44 (0)20 3727 1323
+44 (0)77 7564 1807
Deborah Scott, FTI Consulting
+44 (0)203 727 1459
+44 (0)797 953 7449
About Smiths Group
Smiths Group is a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR programme (SMGZY). A world leader in the practical application of advanced technologies, Smiths Group delivers products and services for the threat & contraband detection, medical devices, energy and communications markets worldwide. Smiths Group employs more than 22,000 people in over 50 countries. For more information visit www.smiths.com.