Funding Solutions Deutschland (FSD) has completed its ninth pension buyout, acquiring Sinterwerke Herne GmbH from Sumitomo Electric Industries.

As part of the deal, FSD acquired all shares in Sinterwerke Herne GmbH and will operate as a pension company under the name Funding Solutions Sinterwerke Herne Pensions GmbH.

The pension company will manage and fulfill pension obligations of Sinterwerke Herne, with all pension liabilities secured by a contractual trust arrangement (CTA) managed by Helaba Pension Trust e.V.

FSD said that its governance platform is expected to provide a sustainable framework for the company's continued operation as a pension company, taking advantage of established governance elements such as clearly capped compensation and the Helaba Trust eV as the external CTA trustee.

The transaction marks FSD's ninth pension company transaction, with the firm selected following a "detailed selection process", managed by ARQIS and supported by corporate and labor law experts.

The ARQIS team, headed by lead partners Eberhard Hafermalz and Tobias Neufeld, also advised Sumitomo Electric Industries on all legal aspects of the transaction.

ARQIS pointed out that while the pension buyout structure is common practice in Anglo-Saxon countries, the pension buyout market in Germany is comparatively young.

However, it emphasised that this market is "rapidly growing".

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