REG - Mpac Group PLC - Defined Benefit Pension Scheme Update

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RNS Number : 0871P  Mpac Group PLC  01 July 2025

 

1 July 2025

AIM: MPAC

Mpac Group plc

 

Trustee of the UK Defined Benefit Pension Scheme completes "buy in"
transaction

 

Mpac Group plc, a global leader in high-speed packaging and automation
solutions, is pleased to announce that the company and the Trustee of the
Molins UK Pension Fund (the "Scheme") have agreed a buy in transaction for the
Scheme with Aviva Life & Pensions UK Limited ("Aviva"), purchasing a bulk
annuity insurance policy for £249m, covering all known liabilities required
to meet future pensions and delivering greater security to members of the
Scheme.  This has been achieved without the need for Mpac to make additional
contributions, whilst leaving residual assets remaining in the Scheme.  The
terms of the policy will eliminate the primary investment, inflation and
longevity risks that the Scheme is exposed to.  The members' benefits are
entirely unaffected by this transaction.

 

The Scheme will now work towards the transfer of the member's benefits to
individual policies with Aviva ("buy out").  This process is expected to take
up to two years whilst routine validation checks are performed in conjunction
with Aviva and will result in the members' pensions being paid directly by
Aviva after the issuance of individual policies.  Contributions to escrow
will continue until buy out is completed.

Mpac has a defined benefit pension net asset position in relation to the
Scheme.  This transaction insures the liabilities represented within that net
asset position and delivers on Mpac's strategy of de-risking its UK pensions
exposure.  The transaction will be reflected in our half-year report, to be
published in September 2025.  The obligation (albeit now fully insured)
remains with the Group until the buy-out is completed.  The Scheme is
anticipated to hold a small surplus of up to £5m which will be returned.

Mpac is supportive of the stewardship and de-risking action taken by the
Trustee, which creates a positive outcome for the Scheme's members.  This
transaction eliminates Mpac's exposure to the funding risks associated with
our UK defined benefit liabilities which, in turn, strengthens Mpac Group for
the benefit of our shareholders.

Will Wilkins, CFO of Mpac, said: "The buy in represents a significant step
forward in the Group's stated strategy of realising value for shareholders.
 Not only does it simplify the Group's Balance Sheet, it also eliminates a
significant risk to Mpac's future profitability and cash flow."

 

For further information, please contact:

 Mpac Group plc                                  Tel: +44(0)24 7642 1100

 Adam Holland, Chief Executive

 Will Wilkins, Chief Financial Officer
 Shore Capital (Nominated Adviser & Broker)      Tel: +44(0)20 7408 4050

 Advisory

 Patrick Castle

 Sophie Collins

 Broking

 Henry Wilcocks

 Panmure Liberum (Joint Broker)                  Tel: +44 (0) 20 3100 2000

 Edward Mansfield

 Will King

 Freddie Wooding                                 Tel: +44 (0) 20 7796 4133

 Hudson Sandler

 Nick Lyon

 Nick Moore

 Francesca Rosser

 

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