WestRock (NYSE:WRK), a paper and packaging company, Friday reported it will transfer $2.5 billion in pension obligations of 35,000 U.S. retirees and beneficiaries to Prudential Financial by late September. The company plans to buy a group annuity contract from Prudential. WestRock said the transfer will reduce its overall U.S. pension obligations by 40%, and that the monthly retirement benefit payment amounts currently received by retirees and their beneficiaries are not changing. WestRock said the new group annuity plan is expected to remain in a strong, overfunded financial position and WestRock does not expect to make any future cash contributions into the plan. Additionally, WestRock does not expect any unfavorable impact to its fiscal 2017 pension income as a result of the transaction.
The stock decreased 1.54% or $0.73 during the last trading session, hitting $46.56. About 2.03M shares traded hands or 1.00% up from the average. WestRock Co (NYSE:WRK) has risen 46.91% since February 8, 2016 and is uptrending. It has outperformed by 30.42% the S&P500.
Westrock Company is a provider of packaging solutions and makes containerboard and paperboard. The company has a market cap of $11.91 billion. The Company’s operating divisions include Corrugated Packaging, Consumer Packaging, Specialty Chemicals, and Land and Development. It has a 34.3 P/E ratio. The Firm operates in North America, South America, Europe and Asia.
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