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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DECEMBER 29, 1999
Date of Report (Date of Earliest Event Reported)
NASHUA CORPORATION
(Exact Name of Registrant as Specified in its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
1-5492-1 02-0170100
(Commission File Number) (I.R.S. Employer Identification No.)
44 FRANKLIN STREET
NASHUA, NEW HAMPSHIRE 03064
(Address of Principal Executive Offices)
(603)880-2323
(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
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INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 5 - OTHER EVENTS
On December 29, 1999, Nashua Corporation issued the following press release:
NASHUA CORPORATION ANNOUNCES GROUP PENSION ANNUITY AGREEMENT
Nashua, NH, December 29, 1999 - Nashua Corporation (NYSE: NSH)
today announced that the Company's pension plans have entered
into an agreement to purchase, for a cash payment of $74.6
million, a nonparticipating group annuity contract from Principal
Life Insurance Company of Des Moines, Iowa to settle the
Company's pension obligation with respect to Nashua retirees who
were receiving pension benefits as of December 1, 1999. Principal
Life Insurance Company will assume the obligation to fund retiree
payments beginning on January 1, 2000. The transaction will
result in Nashua's recognition of a one-time, pre-tax gain of
approximately $8 million upon its completion which is expected to
occur in the first quarter of 2000.
Gerald G. Garbacz, Nashua's Chairman, President and CEO, stated,
"The transaction benefits both our valued retirees and the
Company. Nashua's approximately 1,800 retirees will receive
pension benefits from a financially sound insurance carrier with
proven capabilities in transactions of this type. The move to an
annuity-based system allows Nashua to significantly reduce its
exposure relative to changes in equity and bond markets which
impact the assets held by the Company's pension plans. The change
will allow the Company to focus its near-term investment strategy
on increasing portfolio value for future retirees as opposed to
its previous split focus on income generation for current
retirees and appreciation for future retirees. Nashua's pension
plans will continue to be responsible for providing retirement
benefits to approximately 1,500 former employees who have vested
benefits in the pension plan but were not receiving benefits as
of December 1, 1999, as well as the Company's current active
employees."
This press release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act
of 1995. When used in this press release, the words "expects,"
and similar expressions are intended to identify such
forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties which could cause actual
results to differ materially from those anticipated. Such risks
and uncertainties include, but are not limited to delays or
difficulties in finalizing the details of the transaction,
possible changes in accounting interpretations and other risks
set forth in the Company's filings with the Securities and
Exchange Commission. The Company assumes no obligation to update
the information contained in this press release.
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Nashua Corporation markets specialty imaging products and
services to industrial and commercial customers. The Company's
products include thermal papers, pressure-sensitive labels and
specialty papers, as well as copier, ink jet and laser printer
supplies. Additional information about Nashua Corporation can be
found on the World Wide Web at http://www.nashua.com.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NASHUA CORPORATION
Date: January 5, 2000 By /s/ Peter C. Anastos
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Peter C. Anastos
Vice President, General Counsel
and Secretary
