West Pharmaceutical Services (WST) shares were marginally higher Thursday morning after the medical device company said it agreed to purchase a group annuity contract from Metropolitan Life Insurance to settle $140 million or 44% of its outstanding U.S. pension obligations.
The acquisition is being funded via current plan assets, West Pharmaceutical said. The company added it plans to make an additional contribution of $15 million to its U.S. retirement plan, in an effort to restore the plan’s funded status.
West Pharmaceutical said it expects to incur a non-cash pension settlement charge of $50 million in Q3.
WST was moving in the upper half of the 52-week range of $43.11 to $61.73 in recent morning trade.
Companies: West Pharmaceutical Services, Inc.
Price: 56.40 Price Change: +0.48 Percent Change: +0.86