Barington Capital Group Releases Investor Presentation Outlining the Path to Maximizing Value at Matthews International Corporation
Barington Capital Group, owning 1.9% of Matthews International (NASDAQ: MATW), has released a comprehensive presentation criticizing the company's performance and proposing changes to maximize shareholder value. The presentation highlights a prolonged period of shareholder value destruction under the current leadership.
The activist investor points to poor capital allocation, failed acquisitions, and ineffective capital expenditures under CEO Joseph Bartolacci's tenure since 2006. Barington estimates the company's businesses could have a combined value of $44-57 per share, excluding the Energy Storage business.
Barington recommends immediate actions including: board refresh, new CEO search, focus on value-creating businesses, and increased SG&A expense reduction. The firm has nominated three executives - Ana Amicarella, Chan Galbato, and James Mitarotonda - to the board and urges shareholders to vote the GOLD proxy card at the 2025 Annual Meeting.
Barington Capital Group, che detiene l'1,9% di Matthews International (NASDAQ: MATW), ha pubblicato una presentazione dettagliata che critica le prestazioni dell'azienda e propone cambiamenti per massimizzare il valore per gli azionisti. La presentazione evidenzia un lungo periodo di distruzione del valore per gli azionisti sotto l'attuale dirigenza.
L'investitore attivista sottolinea la scarsa allocazione del capitale, acquisizioni fallite e spese in conto capitale inefficaci sotto la direzione dell'amministratore delegato Joseph Bartolacci dal 2006. Barington stima che le attività dell'azienda potrebbero avere un valore combinato di 44-57 dollari per azione, escludendo il business di Energy Storage.
Barington raccomanda azioni immediate tra cui: rinnovamento del consiglio, ricerca di un nuovo CEO, concentrazione su attività che creano valore e aumento della riduzione delle spese SG&A. La società ha nominato tre dirigenti - Ana Amicarella, Chan Galbato e James Mitarotonda - per il consiglio e sollecita gli azionisti a votare la scheda proxy GOLD durante l'Assemblea Annuale del 2025.
Barington Capital Group, que posee el 1.9% de Matthews International (NASDAQ: MATW), ha publicado una presentación exhaustiva que critica el desempeño de la empresa y propone cambios para maximizar el valor para los accionistas. La presentación resalta un prolongado período de destrucción del valor para los accionistas bajo el liderazgo actual.
El inversor activista señala una pobre asignación de capital, adquisiciones fallidas y una ineficaz capacidad de gasto en capital durante el mandato del CEO Joseph Bartolacci desde 2006. Barington estima que los negocios de la empresa podrían tener un valor combinado de 44-57 dólares por acción, excluyendo el negocio de Almacenamiento de Energía.
Barington recomienda acciones inmediatas que incluyen: renovación de la junta, búsqueda de un nuevo CEO, enfoque en negocios que generan valor y aumento en la reducción de gastos SG&A. La firma ha nominado a tres ejecutivos - Ana Amicarella, Chan Galbato y James Mitarotonda - para la junta y urge a los accionistas a votar la tarjeta provisional GOLD en la Junta Anual de 2025.
Barington Capital Group는 Matthews International (NASDAQ: MATW)의 1.9%를 소유하고 있으며, 회사의 성과를 비판하고 주주 가치를 극대화하기 위한 변경 사항을 제안하는 포괄적인 프레젠테이션을 발표했습니다. 이 프레젠테이션은 현재 리더십 하에 주주 가치가 파괴된 긴 기간을 강조합니다.
행동주의 투자자는 자본 할당의 부실, 실패한 인수, 그리고 2006년부터 CEO 조셉 바톨라치의 재임 하에 비효율적인 자본 지출을 지적합니다. Barington은 회사의 사업이 에너지 저장 사업을 제외하고 주당 44-57 달러의 가치를 가질 수 있다고 추정합니다.
Barington은 즉각적인 조치를 권장하며, 이에는 이사회 갱신, 새로운 CEO 검색, 가치 창출 사업에 집중 및 SG&A 비용 절감 증가가 포함됩니다. 해당 회사는 Ana Amicarella, Chan Galbato, 그리고 James Mitarotonda라는 3명의 임원을 이사회에 추천했으며, 주주들에게 2025년 연례 회의에서 GOLD 대리인을 투표할 것을 촉구하고 있습니다.
Barington Capital Group, détenant 1,9% de Matthews International (NASDAQ: MATW), a publié une présentation complète critiquant la performance de l'entreprise et proposant des changements pour maximiser la valeur des actionnaires. La présentation met en avant une longue période de destruction de la valeur des actionnaires sous la direction actuelle.
L'investisseur activiste souligne une mauvaise allocation du capital, des acquisitions ratées et des dépenses dans le capital inefficaces sous le mandat du PDG Joseph Bartolacci depuis 2006. Barington estime que les activités de la société pourraient avoir une valeur combinée de 44-57 dollars par action, à l'exclusion de l'activité de stockage d'énergie.
Barington recommande des actions immédiates, notamment : le renouvellement du conseil d'administration, la recherche d'un nouveau PDG, la concentration sur les activités créatrices de valeur et l'augmentation de la réduction des dépenses SG&A. La société a nommé trois cadres - Ana Amicarella, Chan Galbato et James Mitarotonda - au conseil et exhorte les actionnaires à voter la carte de procuration GOLD lors de l'Assemblée Générale de 2025.
Barington Capital Group, das 1,9% von Matthews International (NASDAQ: MATW) besitzt, hat eine umfassende Präsentation veröffentlicht, die die Leistungsfähigkeit des Unternehmens kritisiert und Änderungen vorschlägt, um den Aktionärswert zu maximieren. Die Präsentation hebt eine über einen längeren Zeitraum anhaltende Zerstörung des Aktionärswerts unter der aktuellen Führung hervor.
Der aktivistische Investor weist auf schlechte Kapitalallokation, gescheiterte Akquisitionen und ineffektive Investitionen unter CEO Joseph Bartolacci seit 2006 hin. Barington schätzt, dass die Geschäftsbereiche des Unternehmens einen kombinierten Wert von 44-57 Dollar pro Aktie haben könnten, wobei das Geschäft mit Energiespeichern ausgeschlossen ist.
Barington empfiehlt sofortige Maßnahmen, darunter: Erneuerung des Vorstands, Suche nach einem neuen CEO, Konzentration auf wertschaffende Geschäfte und eine Erhöhung der Einsparungen bei den SG&A-Ausgaben. Das Unternehmen hat drei Führungskräfte - Ana Amicarella, Chan Galbato und James Mitarotonda - für den Vorstand nominiert und fordert die Aktionäre auf, die GOLD-Stimmkarte bei der Hauptversammlung 2025 zu wählen.
- Company's businesses estimated value of $44-57 per share, indicating significant upside potential
- Activist investor involvement pushing for operational improvements and cost reductions
- Clear strategic plan proposed including board refresh and SG&A expense reduction
- Prolonged period of shareholder value destruction
- Poor capital allocation and failed acquisitions history
- Deteriorating operating results leading to declining trading multiples
- engagement with improvement recommendations from Barington
- High debt levels requiring attention
Insights
This activist campaign represents a pivotal moment for Matthews International, with far-reaching implications for shareholders. The timing is particularly important given the company's prolonged underperformance and Barington's previous attempted engagement since December 2022.
Several critical aspects deserve investor attention:
- Governance Red Flags: The extended CEO tenure since 2006 and board entrenchment raise serious corporate governance concerns. Long-tenured leadership often correlates with strategic stagnation and resistance to necessary changes.
- Valuation Gap: The significant disparity between current trading price and Barington's valuation estimate of
$44-57 per share suggests substantial trapped value. This45-88% premium to current price indicates material operational inefficiencies. - Strategic Credibility: The activist's critique of "empty promises" and poor capital allocation decisions is particularly concerning, suggesting a pattern of unfulfilled strategic initiatives that have eroded shareholder value.
- Director Nominees: Barington's slate includes Ana Amicarella and Chan Galbato, who bring relevant industrial sector expertise and James Mitarotonda, known for successful activist campaigns. This combination of operational and turnaround experience could prove valuable.
The proposed four-point plan - board refresh, CEO replacement, strategic refocus and cost reduction - addresses core issues. However, the success of this campaign will largely depend on garnering sufficient shareholder support, particularly from institutional investors who typically evaluate such proposals based on the credibility of the activist's plan and the qualifications of their nominees.
For investors, this proxy contest presents a clear choice between maintaining the status quo or supporting a comprehensive transformation plan. The outcome could significantly impact MATW's valuation and operational trajectory in the coming years.
Details Prolonged Period of Shareholder Value Destruction Caused by Poor Performance, Poor Operating Execution and Poor Capital Allocation
Believes CEO and Incumbent Board Are Ineffective, Over Tenured and Entrenched and Cannot be Trusted to Oversee Much-Needed Change Following Years of Empty Promises
Barington's Nominees Bring the Leadership Experience and Sector Expertise the Board Urgently Needs to Unlock Matthews' Embedded Value
Urges Shareholders to Vote the GOLD Proxy Card "FOR" the Election of ALL of Barington Capital's Nominees
Barington encourages Matthews' shareholders to review the presentation so they can make an informed decision at the Company's 2025 Annual Meeting of Shareholders regarding the future of their investment.
Barington's presentation can be found at https://barington.com/matthews.
Key highlights of the presentation include:
- Barington's Extended Engagement with Matthews: Since entering into an agreement in December 2022 pursuant to which Barington served as consultant to the Company, the Matthews team has kept Barington at arms-length, limiting interactions to mostly quarterly phone calls, and, in our view, demonstrating little intent to meaningfully engage. As a result, we witnessed little evidence of progress on any of our recommendations until we called for the Company to replace its CEO and indicated our intent to nominate directors.
- Many Years of Underperformance, Poor Capital Allocation, Poor Operating Execution and Excessive Spending at Matthews: We believe poor capital allocation and deteriorating operating results – caused in large part by failed acquisitions and ineffective capital expenditures – have caused Matthews' shares to trade at declining multiples since Joseph Bartolacci started his role as CEO in 2006.
- Matthews Has Significant Value Potential: As set forth in more detail in the presentation, our analysis suggests that the Company's businesses could have a combined value of
$44 -57 - Matthews' CEO and Board are Ineffective, Over Tenured and Entrenched: We believe Mr. Bartolacci has a long history of using promises of future value creation from the Company's investments to divert attention from its deteriorating performance. Worse, we believe the incumbent Board has failed to hold Mr. Bartolacci accountable for making empty promises that have resulted in shareholder value destruction.
- Change Must Begin at the Top: Despite Matthews' claims, we do not believe that the Company is implementing most of Barington's recommendations. We strongly believe that a vote for Matthews' director nominees will embolden the Company to maintain its untenable status quo, resulting in continued value destruction for shareholders.
- The Strength of Barington's Nominees: Barington has nominated Ana Amicarella, Chan Galbato and James Mitarotonda – three highly accomplished executives with much-needed expertise in key sectors crucial to Matthews' success, considerable experience leading value-creating businesses as CEO, fresh perspectives and an unwavering commitment to putting shareholders' interests first.
- The Path to Driving Long-Term Value Creation at Matthews: Barington recommends that Matthews immediately: 1) refresh the Board and improve corporate governance; 2) promptly commence a search for a new CEO; 3) focus on businesses where Matthews can create long-term shareholder value; and 4) increase the amount of Matthews' planned SG&A expense reduction and allocate cash to reduce indebtedness.
SHOW THE BOARD THAT YOU WILL NO LONGER TOLERATE THE STATUS QUO AND VOTE THE GOLD PROXY CARD TODAY TO HELP MAXIMIZE VALUE AT MATTHEWS
ABOUT BARINGTON CAPITAL GROUP, L.P.
Barington Capital Group, L.P. is a fundamental, value-oriented activist investment firm established by James Mitarotonda in January 2000. Barington invests in undervalued publicly traded companies that Barington believes can appreciate significantly in value when substantive improvements are made to their operations, corporate strategy, capital allocation and corporate governance. Barington's investment team, advisors and network of industry experts draw upon their extensive strategic, operating and boardroom experience to assist companies in designing and implementing initiatives to improve long-term shareholder value.
Media Contact:
Jonathan Gasthalter/Amanda Shpiner
Gasthalter & Co.
212-257-4170
Important Information and Participants in the Solicitation
Barington has filed a definitive proxy statement and associated GOLD proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit votes for the election of its slate of highly-qualified director nominees at the upcoming annual meeting of stockholders of the Company. Details regarding the Barington nominees and the participants in its solicitation are included in its proxy statement and Barington strongly advises all shareholders of the company to read the proxy statement and other proxy materials as they contain important information.
The participants in Barington's proxy solicitation are Barington, Barington Companies Investors, LLC, Barington Capital Group, L.P., LNA Capital Corp., James Mitarotonda, 1 NBL EH, LLC, Joseph Gromek, Ana B. Amicarella and Chan W. Galbato.
If you have any questions, require assistance in voting your GOLD universal proxy card,
or need additional copies of Barington's proxy materials,
please contact:
Okapi Partners
1212 Avenue of the
Banks and Brokerage Firms, Please Call: (212) 297-0720
Shareholders and All Others Call Toll-Free: (877) 285-5990
E-mail: info@okapipartners.com
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SOURCE Barington Capital Group, L.P.
FAQ
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