Funding Solutions Deutschland (FSD) has successfully acquired Sofotec GmbH (“Sofotec”), a German subsidiary of pharmaceutical company AstraZeneca. The Pension Liability Transfer (PLT) was completed by taking over Sofotec in its entirety, to be managed by FSD as a pensioner company. The takeover represents the eighth successfully completed pensioner company transaction for FSD.
FSD was selected as part of a competitive, rigorous and extensive process. This included comprehensive due diligence on FSD, on future corporate governance, investment strategy and balance sheet structure by AstraZeneca’s global pensions team, who were advised by pension law experts Freshfields, with Aon providing actuarial advice.
The structure of the transaction involves Helaba Trust e.V. (“Helaba”) acting as Independent Trustee, governing pre-funded assets ringfenced within a CTA. Investment management is carried out via a regulated special fund managed by an external international investment company, in line with an investment strategy decided by FSD. This structure provides security to members and ensures a sustainable and stable administration for the pensioner company.
FSD receives a base, ongoing administration fee for taking over Sofotec and an alignment fee only if the pensioner company outperforms pre-agreed criteria. Helaba, as external CTA trustee is responsible for verifying these performance criteria.
About Sofotec
Sofotec was a subsidiary of AstraZeneca, based in Bad Homburg, Germany, which specialised in R&D to develop dry powder inhaler products.
About AstraZeneca
AstraZeneca (LSE/STO/Nasdaq: AZN) is a global, science-led biopharmaceutical company that focuses on the research, development and commercialisation of prescription medicines in the areas of oncology, rare diseases and biopharmaceuticals, including cardiovascular, renal and metabolic as well as respiratory and immunological diseases. Based in Cambridge, UK, AstraZeneca operates in over 100 countries. The company’s innovative medicines are used by millions of patients worldwide.
About Funding Solutions
Funding Solutions was founded in 2018 by pension and investment experts as a Pension Risk Boutique. Today, Funding Solutions serves numerous multinational corporations (MNCs) in structuring, managing, and monitoring their pensions and investment landscape.
Funding Solutions has further developed the concept of pension risk transfers, established in the Anglo-Saxon world as Pension Buyout, for Germany. FSD realized the largest commercial Pension Buyout transaction to date using a pensioner company. Funding Solutions has taken over pension commitments of more than EUR 320 million from industrial, service and medical companies as well as from the regulated banking industry.
If you would like to learn more about how FSD can support you with your corporate pensions, please contact us or visit www.fundingsolutions.de.