Menomonee Falls-based Magnetek Inc. announced it has made a voluntary excess contribution of 250,000 shares of Magnetek common stock to its defined benefit pension plan. The contribution of newly issued shares represents less than 5 percent of total pension plan assets and is fully tax-deductible.
Magnetek’s contribution will increase improve its financial standing and the health of its pension plan, reducing the plan’s underfunded balance. The shares were contributed to the plan in a private placement. An independent fiduciary, Evercore Trust Company, N.A., will make the investment decisions for the contributed shares.
Magnetek now has about 3.5 million shares of common stock issued and outstanding. The contribution is expected to dilute earnings per share by about 7 percent this year. The company expects the excess contribution to lessen required pension contributions by about $10 million in the next five years.
Magnetek Inc. manufactures digital power and motion control systems used in material handling, people moving and energy delivery.
