Visteon transferring $350 million in pension assets to Prudential
DETROIT -- Visteon Corp. entered into an agreement to transfer a portion of its U.S. pension assets to Prudential Insurance Co. of America as part of its ongoing restructuring.
Under the agreement, Visteon will transfer $350 million of its $1.1 billion pension obligations to Prudential. The Visteon Pension Plan will purchase a group annuity contract that allows hourly worker pensions to be paid out from Prudential, the Van Buren Township-based supplier said Wednesday in a statement.
The Prudential deal will be funded by existing pension assets, requiring no cash to exchange hands between Visteon and the insurer.
The deal will not change the amount of monthly pension benefit paid to retirees and beneficiaries, Visteon said.
Earlier this month, Visteon completed the $265 million acquisition of Johnson Controls Inc.’s automotive electronics business.
Its Korean joint venture, Halla Visteon Climate Control Corp., also agreed in June to acquire Novi-based Cooper-Standard Automotive Inc.’s thermal and emissions business.