KPMG in exclusive talks to sell pensions arm to private equity firm for more than £200m
KPMG today confirmed it is in exclusive talks to sell its pensions advisory arm to private equity firm Exponent.
The Big Four firm is in discussions to sell its pensions unit to the former Quorn-owner for more than £200m, Sky News reported.
Read more: KPMG launches £100m cost-cutting programme
The division has more than 20 partners and 450 people working for it.
KPMG has been in talks over the sale of the business since June and a number of other bidders submitted offers for it, Sky News reported.
The accountancy giant began to examine a sale of its pensions advisory arm in June following a number of approaches. The move follows attempts to reduce the big four accountancy firms’ consulting work for audit clients.
Sky News previously reported that the decision to explore a potential sale was not a direct result of KPMG UK chairman Bill Michael’s move to ban the firm from taking on both consulting and auditing work for the same company.
Read more: Number of companies entering administration leaps by a third
However, it comes amid increasing regulatory pressure on the big four – which also includes Deloitte, EY and PwC – to reform the structure of their businesses.
Exponent has previously invested in companies such as meat-free food brand Quorn and whisky producer Loch Lomond Distillery.
A spokesperson for KPMG said: “Following significant interest in our market-leading pensions practice, we can confirm we have entered into exclusive talks with Exponent with a view to progressing a sale. We will not comment further while negotiations remain ongoing.”