Matthews International Issues Statement Following ISS Report
Matthews International (MATW) has issued a response to ISS's February 6, 2025 report, strongly disagreeing with its recommendations supporting Barington's positions. The company defends its current board strategy and criticizes Barington's nominees for lacking relevant skills and business understanding.
The company highlights several achievements under the current Board, including: development of the market-leading Memorialization segment, a recent arbitration victory against Tesla regarding DBE technology, and a strategic $350 million disposition of the SGK business. Matthews also disclosed an ongoing comprehensive evaluation of strategic alternatives with J.P. Morgan.
The company announced board refreshment initiatives, including three new independent directors since 2020 and a fourth nominee for the 2025 annual meeting. GAMCO Asset Management, holding approximately 4.38% stake, has announced support for Matthews' director nominees.
Matthews International (MATW) ha emesso una risposta al rapporto di ISS del 6 febbraio 2025, dissociandosi fermamente dalle raccomandazioni che sostengono le posizioni di Barington. L'azienda difende la sua strategia attuale del consiglio e critica i candidati di Barington per la mancanza di competenze rilevanti e comprensione del business.
L'azienda evidenzia diversi risultati ottenuti sotto l'attuale consiglio, tra cui: lo sviluppo del segmento di Memorializzazione leader di mercato, una recente vittoria in arbitrato contro Tesla riguardo alla tecnologia DBE, e una strategica dismissione di 350 milioni di dollari del business SGK. Matthews ha anche reso noto un'analisi complessiva in corso delle alternative strategiche con J.P. Morgan.
L'azienda ha annunciato iniziative di rinnovamento del consiglio, inclusi tre nuovi membri indipendenti dal 2020 e un quarto candidato per l'assemblea annuale del 2025. GAMCO Asset Management, detentore di circa il 4,38% di partecipazione, ha annunciato il suo supporto per i candidati di Matthews al consiglio.
Matthews International (MATW) ha emitido una respuesta al informe de ISS del 6 de febrero de 2025, en desacuerdo firme con sus recomendaciones que apoyan las posiciones de Barington. La empresa defiende su estrategia actual de la junta y critica a los nominados de Barington por carecer de habilidades relevantes y comprensión del negocio.
La compañía destaca varios logros bajo la actual Junta, incluyendo: el desarrollo del segmento de Memorialización líder en el mercado, una reciente victoria en arbitraje contra Tesla relacionado con la tecnología DBE, y una disposición estratégica de 350 millones de dólares del negocio SGK. Matthews también reveló una evaluación integral en curso de alternativas estratégicas con J.P. Morgan.
La compañía anunció iniciativas de renovación de la junta, incluidos tres nuevos directores independientes desde 2020 y un cuarto nominado para la reunión anual de 2025. GAMCO Asset Management, que posee aproximadamente el 4.38% de participación, ha anunciado su apoyo a los nominados al consejo de Matthews.
매튜스 인터내셔널 (MATW)는 2025년 2월 6일 ISS의 보고서에 대한 응답을 발표하며 바링턴의 입장을 지지하는 권고에 강력히 반대했습니다. 회사는 현재 이사회 전략을 방어하고 바링턴의 후보들은 관련 기술 및 사업 이해가 부족하다고 비판했습니다.
회사는 현재 이사회 아래에서의 여러 성과를 강조하며, 시장 선도적인 기념화(Memorialization) 부문 개발, DBE 기술에 대한 테슬라와의 최근 중재 승리, 그리고 SGK 사업의 3억 5천만 달러의 전략적 매각 등을 포함합니다. 매튜스는 또한 J.P. 모건과 함께 전략적 대안에 대한 포괄적 평가를 진행 중임을 밝혔습니다.
회사는 2020년 이후 세 명의 새로운 독립 이사를 포함한 이사회 갱신 계획과 2025년 연례 회의의 네 번째 후보를 발표했습니다. 약 4.38%의 지분을 보유한 GAMCO 자산 관리 회사는 매튜스의 이사 후보를 지지한다고 발표했습니다.
Matthews International (MATW) a publié une réponse au rapport d'ISS du 6 février 2025, exprimant son désaccord fort avec les recommandations soutenant les positions de Barington. L'entreprise défend sa stratégie actuelle du conseil et critique les candidats de Barington pour leur manque de compétences pertinentes et de compréhension des affaires.
L'entreprise souligne plusieurs réalisations sous le conseil actuel, y compris : le développement du segment de Mémoire leader sur le marché, une récente victoire en arbitrage contre Tesla concernant la technologie DBE, et une cession stratégique de 350 millions de dollars de l'activité SGK. Matthews a également révélé une évaluation complète en cours des alternatives stratégiques avec J.P. Morgan.
L'entreprise a annoncé des initiatives de renouvellement du conseil, y compris trois nouveaux administrateurs indépendants depuis 2020 et un quatrième candidat pour l'assemblée générale de 2025. GAMCO Asset Management, détenant environ 4,38 % des parts, a annoncé son soutien aux candidats au conseil de Matthews.
Matthews International (MATW) hat auf den Bericht von ISS vom 6. Februar 2025 reagiert und lehnt die Empfehlungen, die die Positionen von Barington unterstützen, entschieden ab. Das Unternehmen verteidigt seine aktuelle Vorstandstrategie und kritisiert die Nominierungen von Barington aufgrund mangelnder relevanter Fähigkeiten und Geschäftseinsicht.
Das Unternehmen hebt mehrere Erfolge unter dem aktuellen Vorstand hervor, darunter: die Entwicklung des marktführenden Segments der Memorialisierung, einen kürzlichen Schiedsgerichtssieg gegen Tesla bezüglich der DBE-Technologie und eine strategische Veräußering des SGK-Geschäfts im Wert von 350 Millionen Dollar. Matthews gab außerdem eine laufende umfassende Bewertung strategischer Alternativen mit J.P. Morgan bekannt.
Das Unternehmen kündigte Initiativen zur Auffrischung des Vorstands an, einschließlich drei neuer unabhängiger Direktoren seit 2020 und einem vierten Kandidaten für die Jahreshauptversammlung 2025. GAMCO Asset Management, das etwa 4,38 % der Anteile hält, hat seine Unterstützung für die Direktorenkandidaten von Matthews angekündigt.
- Strategic disposition of SGK business for $350 million
- Arbitration victory against Tesla enabling DBE technology commercialization
- Support from major shareholder GAMCO Asset Management (4.38% stake)
- Market-leading position in Memorialization segment
- Board refreshment with three new independent directors since 2020
- Ongoing proxy battle with activist investor Barington
- ISS recommendation against current management
Insights
This proxy battle represents a critical juncture for Matthews International, with significant implications for shareholder value and corporate strategy. The company's defense highlights several value-creation initiatives that warrant careful analysis:
The $350 million SGK disposition demonstrates proactive portfolio optimization, initiated well before activist involvement. This transaction's structure, offering both immediate capital and future upside through synergies, reflects strategic foresight in maximizing value while maintaining potential upside.
The recent arbitration victory against Tesla regarding Dry Battery Electrode (DBE) technology is particularly noteworthy. This resolution removes a significant impediment to commercialization, potentially unlocking substantial value in the rapidly expanding EV battery market. The ability to now freely market and sell DBE solutions to global battery and automobile manufacturers could represent a major growth catalyst.
The board refreshment strategy shows measured progress, with three new independent directors since 2020 and another nominated for 2025. The planned departure of Mr. Babe in 2026 demonstrates ongoing commitment to governance evolution. However, this gradual approach contrasts with Barington's push for more immediate change.
GAMCO's support (holding 4.38% stake) lends credibility to the current board's strategy, particularly given their reputation for thorough due diligence in proxy contests. Their endorsement suggests that institutional investors may see more value in the incumbent board's execution capabilities versus Barington's proposed changes.
The comprehensive strategic review being conducted with J.P. Morgan indicates potential for additional value-creating initiatives throughout fiscal 2025. This structured approach to portfolio optimization and strategic alternatives evaluation demonstrates a methodical path to value creation, rather than the more disruptive changes proposed by the activist.
PITTSBURGH, Feb. 07, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (Nasdaq GSM: MATW) (“Matthews” or the “Company”) issued the following statement regarding a February 6, 2025 report by Institutional Shareholder Services ("ISS"):
We strongly disagree with ISS’ recommendation, which adopts Barington’s positions while giving no substantive analysis to Barington’s own plans and nominees. In doing so, ISS does not give appropriate consideration to the concerning absence of relevant skills and new ideas among Barington’s nominees and the actions Matthews is taking to unlock the value of its businesses.
Notably, Barington’s “four-step plan” contains no ideas that would help shareholders, except those (like a strategic transaction of SGK) that have already been initiated by the Company. ISS’ report does not address whether Barington’s plans for the Company would be better for shareholders than the Board’s current strategy.
Additionally, we do not agree with the position that the “most important attribute” that Barington’s nominees have is their “independence.” In fact, they would bring to the Board a total lack of understanding about our business, no relevant skills, and track records of poor oversight. As a consultant to the Company, James Mitarotonda added no value, showed up to most meetings unprepared and made suggestions that either did not make sense or were already being executed. Barington’s other two nominees also showed no understanding of our Company in interviews with directors. Furthermore, Mr. Mitarotonda and his nominees have no experience relevant to the businesses in which we operate, and each have been criticized for questionable M&A oversight that was alleged to have destroyed shareholder value.
In contrast, under the current Board of Directors, the Company has taken significant actions to benefit all shareholders:
- The Board has developed our Memorialization segment into a market-leading, cash-generating business—leading to significant capital return to shareholders and significant re-investment into our high-growth Industrial Technologies segment, such as our Dry Battery Electrode (DBE) technology. Following our recent victory against Tesla in arbitration, we intend to immediately resume marketing, selling and delivering our DBE solutions to other customers in the growing electric vehicle market, where battery and automobile equipment manufacturers from around the world seek to adopt our innovative solutions. We expect that this victory will eliminate an overhang on the stock that we believed was caused by this dispute.
- The Board announced a strategic disposition of the SGK business following a process begun in 2019, well before Barington was even a shareholder. The SGK transaction provides for substantial upfront consideration of
$350 million at closing, while still benefiting from synergy-driven value creation in the future. The favorable terms of the SGK transaction reflect the various strategic investments in technology and cost-savings initiatives executed by the leadership team over recent years.
- The Board disclosed a comprehensive evaluation of strategic alternatives for all of the Company’s businesses, engaging J.P. Morgan’s expertise to facilitate this process. Matthews expects to announce several initiatives over the course of the 2025 fiscal year that we believe will help drive shareholder value.
- Since 2020, we have welcomed three new independent directors and nominated a fourth new independent director for election at the 2025 annual meeting. The Board plans to continue to refresh in the coming year. As part of this commitment, Mr. Babe will not stand for re-election at the 2026 annual meeting, which is further evidence of Board change and refreshment. Matthews' nominees bring the right set of skills and expertise to help the board drive long-term shareholder value.
On January 31, 2025, GAMCO Asset Management, one of Matthews’ top 5 shareholders with an approximate
We have been in ongoing discussions with shareholders and value the feedback we have received. We look forward to continuing these conversations and are committed to doing what is in the best interest of all Matthews shareholders.
Your vote is important, and we ask that you vote “FOR” all three Matthews’ nominees on the WHITE proxy card and “WITHHOLD” on Barington’s Director Nominees.
J.P. Morgan Securities LLC is serving as financial advisor to Matthews. Sidley Austin LLP is serving as legal counsel to Matthews.
About Matthews International
Matthews International Corporation is a global provider of memorialization products, industrial technologies, and brand solutions. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets, cremation-related products, and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. The Industrial Technologies segment includes the design, manufacturing, service and sales of high-tech custom energy storage solutions; product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products; and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. The SGK Brand Solutions segment is a leading provider of packaging solutions and brand experiences, helping companies simplify their marketing, amplify their brands and provide value. The Company has over 11,000 employees in more than 30 countries on six continents that are committed to delivering the highest quality products and services.
| YOUR VOTE IS IMPORTANT! Your vote is important, and we ask that you please vote “FOR” the election of our three nominees: Terry L. Dunlap, Alvaro Garcia-Tunon and J. Michael Nauman using the WHITE proxy card and “WITHHOLD” on Barington’s nominees. Simply follow the easy instructions on the enclosed WHITE proxy card to vote by internet or by signing, dating and returning the WHITE proxy card in the postage-paid envelope provided. If you received this letter by email, you may also vote by pressing the WHITE “VOTE NOW” button in the accompanying email. The Board of Directors urges you to disregard any such materials and does not endorse any of Barington’s nominees. If you have any questions or require any assistance with voting your shares, please call the Company’s proxy solicitor at: (888) 755-7097 or email MATWinfo@Georgeson.com |
Additional Information
In connection with the Company’s 2025 Annual Meeting, the Company has filed with the U.S. Securities and Exchange Commission (“SEC”) and commenced mailing to the shareholders of record entitled to vote at the 2025 Annual Meeting a definitive proxy statement and other documents, including a WHITE proxy card. SHAREHOLDERS ARE ENCOURAGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) FILED BY THE COMPANY AND ALL OTHER RELEVANT DOCUMENTS WHEN FILED WITH THE SEC AND WHEN THEY BECOME AVAILABLE BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Investors and other interested parties will be able to obtain the documents free of charge at the SEC’s website, www.sec.gov, or from the Company at its website: http://www.matw.com/investors/sec-filings. You may also obtain copies of the Company’s definitive proxy statement and other documents, free of charge, by contacting the Company’s Investor Relations Department at Matthews International Corporation, Two NorthShore Center, Pittsburgh, Pennsylvania 15212-5851, Attention: Investor Relations, telephone (412) 442-8200.
Participants in the Solicitation
The participants in the solicitation of proxies in connection with the 2025 Annual Meeting are the Company, Alvaro Garcia-Tunon, Gregory S. Babe, Joseph C. Bartolacci, Katherine E. Dietze, Terry L. Dunlap, Lillian D. Etzkorn, Morgan K. O’Brien, J. Michael Nauman, Aleta W. Richards, David A. Schawk, Jerry R. Whitaker, Francis S. Wlodarczyk, Steven F. Nicola and Brian D. Walters.
Certain information about the compensation of the Company’s named executive officers and non-employee directors and the participants’ holdings of the Company’s Common Stock is set forth in the sections entitled “Compensation of Directors” (on page 36 and available here), “Stock Ownership of Certain Beneficial Owners and Management” (on page 64 and available here), “Executive Compensation and Retirement Benefits” (on page 66 and available here), and “Appendix A” (on page A-1 and available here), respectively, in the Company’s definitive proxy statement, dated January 7, 2025, for its 2025 Annual Meeting as filed with the SEC on Schedule 14A, available here. Additional information regarding the interests of these participants in the solicitation of proxies in respect of the 2025 Annual Meeting and other relevant materials will be filed with the SEC when they become available. These documents are or will be available free of charge at the SEC’s website at www.sec.gov.
Forward-Looking Statements
Any forward-looking statements contained in this release are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions or strategies of the Company regarding the future, including statements regarding the anticipated timing and benefits of the proposed joint venture transaction, and may be identified by the use of words such as “expects,” “believes,” “intends,” “projects,” “anticipates,” “estimates,” “plans,” “seeks,” “forecasts,” “predicts,” “objective,” “targets,” “potential,” “outlook,” “may,” “will,” “could” or the negative of these terms, other comparable terminology and variations thereof. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially different from management’s expectations, and no assurance can be given that such expectations will prove correct. Factors that could cause the Company's results to differ materially from the results discussed in such forward-looking statements principally include the possibility that the terms of the final award to be issued by the Arbitrator in the Tesla, Inc. ("Tesla") dispute may differ from the terms of the interim award issued by the Arbitrator and may be challenged, our ability to satisfy the conditions precedent to the consummation of the proposed joint venture transaction on the expected timeline or at all, our ability to achieve the anticipated benefits of the proposed joint venture transaction, uncertainties regarding future actions that may be taken by Barington in furtherance of its intention to nominate director candidates for election at the Company’s 2025 Annual Meeting, potential operational disruption caused by Barington’s actions that may make it more difficult to maintain relationships with customers, employees or partners, changes in domestic or international economic conditions, changes in foreign currency exchange rates, changes in interest rates, changes in the cost of materials used in the manufacture of the Company's products, including changes in costs due to adjustments to tariffs, any impairment of goodwill or intangible assets, environmental liability and limitations on the Company’s operations due to environmental laws and regulations, disruptions to certain services, such as telecommunications, network server maintenance, cloud computing or transaction processing services, provided to the Company by third-parties, changes in mortality and cremation rates, changes in product demand or pricing as a result of consolidation in the industries in which the Company operates, or other factors such as supply chain disruptions, labor shortages or labor cost increases, changes in product demand or pricing as a result of domestic or international competitive pressures, ability to achieve cost-reduction objectives, unknown risks in connection with the Company's acquisitions, divestitures and business combinations, cybersecurity concerns and costs arising with management of cybersecurity threats, effectiveness of the Company's internal controls, compliance with domestic and foreign laws and regulations, technological factors beyond the Company's control, impact of pandemics or similar outbreaks, or other disruptions to our industries, customers, or supply chains, the impact of global conflicts, such as the current war between Russia and Ukraine, the Company's plans and expectations with respect to its exploration, and contemplated execution, of various strategies with respect to its portfolio of businesses, the Company's plans and expectations with respect to its Board, and other factors described in the Company’s Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission.
Matthews International Corporation
Corporate Office
Two NorthShore Center
Pittsburgh, PA 15212-5851
Phone: (412) 442-8200
Contacts
Matthews International Co.
Steven F. Nicola
Chief Financial Officer and Secretary
(412) 442-8262
Sodali & Co.
Michael Verrechia/Bill Dooley
(800) 662-5200
MATW@investor.sodali.com
Georgeson LLC
Bill Fiske / David Farkas
MATWinfo@Georgeson.com
Collected Strategies
Dan Moore / Scott Bisang / Clayton Erwin
MATW-CS@collectedstrategies.com
FAQ
What is the value of MATW's SGK business sale?
How did MATW's arbitration against Tesla conclude?
What percentage stake does GAMCO Asset Management hold in MATW?
How many new independent directors has MATW added since 2020?
What is ISS's recommendation regarding MATW's proxy contest with Barington?
