Benzinga | Jun 25, 2021 09:39AM EDT

Sonoco Buys Group Annuity Contracts From Athene

* Packaging company Sonoco Products Co (NYSE:SON) has announced the purchase of group annuity contracts from Athene Holding Ltd (NYSE:ATH), an insurance company.

* The purchase of the group annuity contracts transfers the responsibility for pension benefit payments to Athene for approximately 8,300 Sonoco beneficiaries.

* Sonoco expects to recognize non-cash, pre-tax pension settlement charges totaling approximately $550 million in the second quarter of 2021.

* "This transaction is the final step in our previously announced actions to reduce pension liabilities and the volatility associated with the pension assets," said John Florence, Vice President of Human Resources, Sonoco.

* Price action: SON shares are trading higher by 0.52% at $66.38 on the last check Friday.