Linklaters has advised long-term savings and retirement business Phoenix Group on its £248m acquisition of SLF of Canada UK (Sun Life UK), a UK closed book life insurance company, from Sun Life Financial Inc. The transaction closed on 3rd April 2023.

Sun Life UK represents c.£10bn of the estimated £480bn UK Heritage M&A market, and this transaction represents Phoenix Group’s first acquisition to be financed solely from existing cash resources, reflecting the surplus cash and capital available for reinvestment into growth. This acquisition is expected to deliver c.£470 million of incremental long-term cash generation for Phoenix Group, with approximately 30% of this cash generation to emerge in the first three years.

Dan Schuster-Woldan, corporate partner, comments:

“It’s been a real pleasure being able to support the Phoenix legal M&A and corporate development teams in getting this transaction over the line.”

The Linklaters team was led by corporate partner Dan Schuster-Woldan, together with corporate associates Cameron Western, Will Smith and Landy Mao. Partner Lynne Walkington and associate Rohesia Vince advised on tax matters, and counsel Richard Cole and associate Athena Ng advised on investment management matters. Partner Cara Hegarty and counsel Julie Sharp advised on employment and incentives matters and partner Sarah Parkin and counsel Alasdair Smith advised on pensions matters. On IP/TMT matters partner Ian Karet, counsel So Yeon Um and managing associates Elizabeth Horvarth and Patrick O’Connell advised. From a financial regulatory perspective, partner Alastair Holt and associate George Colenutt advised.

This M&A mandate for Phoenix Group continues Linklaters’ excellent track record of advising on high profile M&A transactions within the insurance sector.