Barington Capital Responds to Matthews International's Desperate Effort to Manipulate Board Election
Barington Capital, owning 2.2% of Matthews International (MATW), has issued a critical response to Matthews' recent corporate governance changes, calling them a desperate last-minute attempt to maintain status quo before the upcoming board election. Barington highlights that Matthews previously rejected their proposal to declassify the staggered board, and criticizes the retention of Greg Babe as director despite his involvement in a failed $3.1 million investment in Liquid X Printed Metals.
The activist investor also questions Matthews' timing in announcing a letter of intent to sell SGK Brand Solutions businesses without a definitive agreement. Barington urges shareholders to vote their GOLD proxy card for all of their nominees, arguing that only their independent candidates can enhance board accountability and maximize shareholder value.
Barington Capital, che detiene il 2,2% di Matthews International (MATW), ha emesso una risposta critica alle recenti modifiche nella governance aziendale di Matthews, definendole un disperato tentativo dell'ultimo minuto per mantenere lo status quo prima delle prossime elezioni del consiglio. Barington sottolinea che Matthews ha precedentemente rifiutato la loro proposta di declassificare il consiglio scaglionato e critica la permanenza di Greg Babe come direttore nonostante il suo coinvolgimento in un investimento fallito da 3,1 milioni di dollari in Liquid X Printed Metals.
L'investitore attivista mette anche in discussione il tempismo di Matthews nell'annunciare una lettera di intenti per vendere le attività di SGK Brand Solutions senza un accordo definitivo. Barington esorta gli azionisti a votare la loro scheda di delega GOLD per tutti i loro candidati, sostenendo che solo i loro candidati indipendenti possono migliorare la responsabilità del consiglio e massimizzare il valore per gli azionisti.
Barington Capital, que posee el 2.2% de Matthews International (MATW), ha emitido una respuesta crítica a los recientes cambios en la gobernanza corporativa de Matthews, calificándolos como un desesperado intento de última hora para mantener el statu quo antes de las próximas elecciones del consejo. Barington destaca que Matthews rechazó previamente su propuesta de desclasificar la junta escalonada y critica la retención de Greg Babe como director a pesar de su participación en una fallida inversión de 3.1 millones de dólares en Liquid X Printed Metals.
El inversor activista también cuestiona el momento de Matthews al anunciar una carta de intención para vender los negocios de SGK Brand Solutions sin un acuerdo definitivo. Barington insta a los accionistas a votar su tarjeta de poder GOLD para todos sus nominados, argumentando que solo sus candidatos independientes pueden mejorar la responsabilidad del consejo y maximizar el valor para los accionistas.
바링턴 캐피탈은 매튜스 인터내셔널 (MATW)의 2.2%를 보유하고 있으며, 매튜스의 최근 기업 거버넌스 변화에 대해 비판적인 반응을 보였습니다. 이는 다가오는 이사회 선거를 앞두고 현상 유지를 유지하려는 절박한 마지막 시도라고 주장했습니다. 바링턴은 매튜스가 이전에 그들의 이사회 단계적 분류 해제 제안을 거부했음을 강조하며, Liquid X Printed Metals에 대한 310만 달러 규모의 실패한 투자에 연루된 그렉 베이브를 이사로 유지하는 것에 대해 비판했습니다.
또한, 이 활동가 투자자는 매튜스가 SGK 브랜드 솔루션 비즈니스를 판매하기 위한 의향서를 발표한 시기를 의문시하며, 확정된 계약 없이 이뤄진 발표라고 지적했습니다. 바링턴은 주주들에게 모든 후보자에 대해 GOLD 위임장을 투표할 것을 촉구하며, 그들의 독립적인 후보자만이 이사회의 책임성을 강화하고 주주 가치를 극대화할 수 있다고 주장했습니다.
Barington Capital, qui détient 2,2 % de Matthews International (MATW), a émis une réponse critique aux récents changements de gouvernance d'entreprise de Matthews, les qualifiant de tentative désespérée de dernière minute pour maintenir le statu quo avant les prochaines élections du conseil. Barington souligne que Matthews a précédemment rejeté leur proposition de déclassifier le conseil d'administration échelonné et critique le maintien de Greg Babe en tant que directeur malgré son implication dans un investissement raté de 3,1 millions de dollars dans Liquid X Printed Metals.
L'investisseur activiste remet également en question le timing de Matthews en annonçant une lettre d'intention de vente des activités de SGK Brand Solutions sans un accord définitif. Barington exhorte les actionnaires à voter leur carte de procuration GOLD pour tous leurs candidats, soutenant que seuls leurs candidats indépendants peuvent améliorer la responsabilité du conseil et maximiser la valeur pour les actionnaires.
Barington Capital, das 2,2% von Matthews International (MATW) besitzt, hat eine kritische Antwort auf die jüngsten Änderungen in der Unternehmensführung von Matthews veröffentlicht und diese als verzweifelten Versuch beschrieben, den Status quo vor den bevorstehenden Vorstandswahlen aufrechtzuerhalten. Barington hebt hervor, dass Matthews zuvor ihren Vorschlag zur Deklassifizierung des gestaffelten Vorstands abgelehnt hat und kritisiert die Beibehaltung von Greg Babe als Direktor, obwohl er an einer gescheiterten Investition von 3,1 Millionen Dollar in Liquid X Printed Metals beteiligt war.
Der aktivistische Investor hinterfragt zudem das Timing von Matthews, eine Absichtserklärung zum Verkauf der SGK Brand Solutions-Geschäfte ohne einen endgültigen Vertrag anzukündigen. Barington fordert die Aktionäre auf, ihre GOLD-Vollmacht für alle ihre Nominierungen abzugeben und argumentiert, dass nur ihre unabhängigen Kandidaten die Verantwortung des Vorstands erhöhen und den Aktionärswert maximieren können.
- Leading proxy advisory firms ISS, Glass Lewis, and Egan-Jones support Barington's nominees
- Company announced intention to sell SGK Brand Solutions businesses, showing potential strategic restructuring
- $3.1 million investment in Liquid X Printed Metals was completely written off
- Board governance issues with staggered board structure
- Concerns about director independence with three insiders on the Board
- No definitive agreement for SGK Brand Solutions sale
Insights
The ongoing proxy battle between Barington Capital and Matthews International represents a critical inflection point for corporate governance and shareholder value. The unanimous support from all three major proxy advisory firms - ISS, Glass Lewis, and Egan-Jones - for Barington's nominees is particularly noteworthy, as such consensus among these influential firms occurs in less than
The timing and nature of Matthews' governance changes reveal significant strategic vulnerabilities. The company's sudden reversal on board declassification, after explicitly rejecting it last month, suggests reactive rather than proactive governance. The controversy surrounding director Greg Babe's dual role as EVP and his management of Liquid X Printed Metals - which resulted in a complete write-off of Matthews'
The announcement of a potential SGK Brand Solutions sale without a definitive agreement appears tactically timed to influence the upcoming shareholder vote. This approach could potentially weaken Matthews' negotiating position in the sale process and risks creating execution uncertainty that could impact shareholder value.
The convergence of these issues - questionable board oversight, reactive governance changes, and strategic timing of major announcements - suggests systemic governance challenges that typically lead to sustained underperformance. Historical precedents in similar proxy contests indicate that when all three major proxy advisory firms align with an activist investor, the probability of significant board changes increases to over
Urges Shareholders Not to be Fooled by the Company's 11th Hour Governance Changes: Clearly A Direct Reaction to Barington's Nomination
Encourages Shareholders to Follow the Recommendations of Leading Independent Proxy Advisory Firms ISS, Glass Lewis, and Egan-Jones by Voting the GOLD Proxy Card "FOR" the Election of ALL of Barington's Nominees
James Mitarotonda, Chairman and CEO of Barington Capital, said, "Matthews' 11th hour gamesmanship is a desperate attempt by Joseph Bartolacci and the current Matthews directors to perpetuate the status quo. We believe these actions are a direct result of Barington's efforts to drive much-needed change, and are simply too little, too late. Indeed, as recently as last month, Matthews flatly rejected our public call for the Company to declassify its staggered board of directors (the "Board").[i]
"A prime example of Matthews' governance changes falling terribly short, in our view, is that Greg Babe, one of three insiders on the Board, has been allowed to remain a director. Despite Mr. Babe's full-time role as Executive Vice President of Matthews' Industrial Technologies business – and responsibility for the Company's Battery Storage business – the Board has allowed him to manage another, unrelated company, Liquid X Printed Metals, Inc., into which Matthews invested
"Worse, Matthews' so-called governance enhancements come on the same day that the Company announced a letter of intent to sell the remaining businesses of SGK Brand Solutions. The announcement of a potential transaction – before a definitive agreement has been reached and with no guarantee that it will be consummated – further reflects Matthews' desperation heading into the upcoming annual meeting.
"Shareholders should not be fooled by Matthews' last-ditch efforts to hide from its protracted failure to protect shareholder interests and manipulate a fair election of directors. It is clear to us that only by electing Barington's independent nominees will accountability and oversight be enhanced in the boardroom and shareholder value be maximized. We strongly urge shareholders to protect the value of their investment by voting the GOLD proxy card "FOR" ALL of Barington's highly qualified nominees, who, as directors, will help bring the board effectiveness, relevant skills and experience, accountability and track records of value creation that Matthews requires to improve corporate governance, reestablish credibility and create value for all shareholders."
VOTE THE GOLD PROXY CARD "FOR" ALL OF BARINGTON'S NOMINEES TODAY!
Barington encourages all shareholders to visit https://barington.com/matthews to review additional information regarding its campaign for change 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
i Barington letter to fellow shareholders, January 10, 2025 (www.barington.com/matthews).
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SOURCE Barington Capital Group, L.P.
FAQ
What percentage of Matthews International (MATW) does Barington Capital own?
How much did MATW lose on its Liquid X Printed Metals investment?
Which proxy advisory firms support Barington's nominees for MATW's board?
What is MATW planning to sell according to the announcement?
What corporate governance changes is Barington seeking at MATW?
