MONTREAL, Jan. 15, 2020 /CNW Telbec/ - Supremex Inc. ("Supremex" or the "Company") (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, today announced the purchase of a $46 million CAD group annuity buy-in with RBC Life Insurance Company in order to transfer longevity and investment risks related to the pensioners and deferred vested members of its largest defined benefit plan.
The transaction covers 361 pensioners, beneficiaries and deferred vested members. A similar transaction of nearly $7 million CAD was also performed in June 2018 for a smaller group of pensioners with respect to another defined benefit pension plan of the Company.
"Annuity buy-ins are part of our ongoing pension risk management strategy. In consultation with our actuaries at Eckler, we entered into a group annuity buy-in contract at a very competitive price, in-line with our financial objectives. We are pleased that our efforts concluded in this transaction, which considerably reduces the risk profile and volatility associated with our defined benefit pension plans and further secures our members' benefits." said Guy Prenevost, Chief Financial Officer of Supremex.
This transaction was structured as a group annuity buy-in, and as a result, does not require additional Company funding nor does it have any impact on Supremex' 2019 financial results.
Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions. Supremex operates 12 facilities across seven provinces in Canada and three facilities in the United States employing approximately 800 people. Supremex' growing footprint allows it to efficiently manufacture and distribute paper and packaging solutions designed to the specifications of major national and multinational corporations, resellers, government entities, SMEs and solutions providers. For more information, please visit www.supremex.com.
SOURCE Supremex Inc.
For further information: Guy Prenevost, Chief Financial Officer, [email protected], 514 595-0555, extension 2312