Sale of participating employer and vesting

A participating employer in a 401(k) plan is being sold via a stock sale (will no longer be in the controlled group).  Employer contributions in the 401(k) are subject to a vesting schedule. 

Will the employees of the participating employer who participate in the 401(k) plan end up forfeiting non-vested amounts?  There won't be any partial plan termination. 

Thanks in advance! 

1 hour ago, Steamboat said:

There won't be any partial plan termination. 

Are you sure? Just because the number of affected employees is less than 20% does not make it not a partial plan termination. It's always a facts and circumstances determination. An employer-initiated mass termination is usually indicative of a partial plan termination.

thanks for your reply.  The participating employer is very, very small as compared to the plan sponsor.   It doesn't seem that a stock sale would qualify as a termination in this case. 

I agree with C.B. Zeller that it is facts and circumstances. Usually if the buyer is taking the employees and doesn't want to do a spin-off merger of the employees' balances, it will negotiate for full vesting for the group of employees it's getting. Look at it from the employees' perspective (and it's even worse if they will not be hired by the buyer).