Matthews International to Sell Remaining Operating Businesses Within SGK Brand Solutions for $50 Million
Matthews International (MATW) has announced a letter of intent to sell the remaining operating businesses within its SGK Brand Solutions segment for $50 million, primarily consisting of European roto-gravure packaging and surfaces businesses. This follows the previously announced sale of its interest in SGK for $350 million on January 8, 2025.
The combined transactions will bring total upfront consideration to $400 million, implying a total current value exceeding $600 million. The company expects the total realized value to exceed $700 million once the new entity is fully synergized and after disposing of investment in operating software.
The proceeds will be predominantly in cash and used for debt repayment. The transaction is expected to complete in the third quarter, subject to definitive agreement, buyer financing, and regulatory approvals.
Matthews International (MATW) ha annunciato una lettera di intenti per vendere le rimanenti attività operative all'interno del suo segmento SGK Brand Solutions per 50 milioni di dollari, costituito principalmente da attività di imballaggio e superfici in roto-gravure europee. Questo segue la vendita precedentemente annunciata della sua partecipazione in SGK per 350 milioni di dollari l'8 gennaio 2025.
Le transazioni combinate porteranno il totale del corrispettivo iniziale a 400 milioni di dollari, implicando un valore attuale totale superiore a 600 milioni di dollari. L'azienda prevede che il valore totale realizzato supererà 700 milioni di dollari una volta che la nuova entità sarà completamente sinergizzata e dopo aver dismesso l'investimento in software operativo.
I proventi saranno prevalentemente in contante e utilizzati per il rimborso del debito. Si prevede che la transazione venga completata nel terzo trimestre, soggetta a un accordo definitivo, finanziamento dell'acquirente e approvazioni normative.
Matthews International (MATW) ha anunciado una carta de intención para vender los negocios operativos restantes dentro de su segmento SGK Brand Solutions por 50 millones de dólares, que consiste principalmente en negocios de empaques y superficies en roto-grabado europeos. Esto sigue a la venta previamente anunciada de su participación en SGK por 350 millones de dólares el 8 de enero de 2025.
Las transacciones combinadas llevarán el total del pago inicial a 400 millones de dólares, lo que implica un valor total actual que supera los 600 millones de dólares. La empresa espera que el valor total realizado supere los 700 millones de dólares una vez que la nueva entidad esté completamente sinergizada y después de deshacerse de la inversión en software operativo.
Los ingresos serán predominantemente en efectivo y se utilizarán para el pago de deudas. Se espera que la transacción se complete en el tercer trimestre, sujeta a un acuerdo definitivo, financiamiento del comprador y aprobaciones regulatorias.
매튜스 인터내셔널 (MATW)는 SGK 브랜드 솔루션 부문 내 남아 있는 운영 비즈니스를 5천만 달러에 판매하기 위한 의향서를 발표했습니다. 이는 주로 유럽의 로토 그래버 포장 및 표면 사업으로 구성됩니다. 이는 2025년 1월 8일에 SGK에 대한 지분 매각이 3억 5천만 달러로 발표된 이후의 일입니다.
결합된 거래는 총 초기 보상금을 4억 달러로 가져오며, 이는 현재 총 가치를 6억 달러 이상으로 의미합니다. 회사는 새로운 엔티티가 완전히 시너지를 이루고 운영 소프트웨어에 대한 투자를 처분한 후 총 실현 가치가 7억 달러를 초과할 것으로 예상하고 있습니다.
수익은 주로 현금으로 이루어지며 부채 상환에 사용될 예정입니다. 거래는 최종 계약, 구매자 자금 조달 및 규제 승인을 조건으로 하여 3분기 내에 완료될 것으로 예상됩니다.
Matthews International (MATW) a annoncé une lettre d'intention pour vendre les activités opérationnelles restantes de son segment SGK Brand Solutions pour 50 millions de dollars, consistant principalement en des activités d'emballage et de surfaces en roto-gravure en Europe. Cela fait suite à la vente précédemment annoncée de sa participation dans SGK pour 350 millions de dollars le 8 janvier 2025.
Les transactions combinées porteront le montant total de la contrepartie initiale à 400 millions de dollars, impliquant une valeur actuelle totale dépassant 600 millions de dollars. La société s'attend à ce que la valeur totale réalisée dépasse 700 millions de dollars une fois que la nouvelle entité sera entièrement synergisée et après avoir cédé l'investissement dans le logiciel opérationnel.
Les recettes seront principalement en espèces et utilisées pour le remboursement de la dette. La transaction devrait être finalisée au cours du troisième trimestre, sous réserve d'un accord définitif, de financement de l'acheteur et d'approbations réglementaires.
Matthews International (MATW) hat eine Absichtserklärung zur Veräußering der verbleibenden operativen Geschäfte innerhalb seines SGK Brand Solutions Segments für 50 Millionen Dollar angekündigt, die hauptsächlich aus europäischen Roto-Gravur-Verpackungs- und Oberflächenunternehmen bestehen. Dies folgt auf den zuvor angekündigten Verkauf seiner Beteiligung an SGK für 350 Millionen Dollar am 8. Januar 2025.
Die kombinierten Transaktionen werden die Gesamtsumme der Vorauszahlung auf 400 Millionen Dollar bringen, was einen aktuellen Gesamtwert von über 600 Millionen Dollar impliziert. Das Unternehmen erwartet, dass der realisierte Gesamtwert 700 Millionen Dollar übersteigen wird, sobald die neue Einheit vollständig synergisiert ist und nach der Veräußering der Investition in betriebliche Software.
Die Einnahmen werden überwiegend in bar sein und zur Schuldentilgung verwendet werden. Die Transaktion soll im dritten Quartal abgeschlossen werden, vorbehaltlich eines endgültigen Vertrags, der Finanzierung des Käufers und behördlicher Genehmigungen.
- Total upfront consideration of $400 million from combined SGK segment sales
- Expected total realized value to exceed $700 million post-synergies
- Immediate debt reduction from cash proceeds
- Strategic streamlining of business structure
- Divestiture of significant business segment
- Transaction completion subject to multiple conditions including regulatory approval
Insights
This strategic divestiture marks a pivotal transformation for Matthews International, carrying several significant implications for investors:
Transaction Structure & Value Creation: The
Debt Reduction Strategy: The immediate application of proceeds to debt reduction represents a decisive move to strengthen the balance sheet. This debt paydown will likely result in reduced interest expenses and improved financial flexibility, potentially leading to a lower cost of capital and enhanced ability to invest in growth initiatives.
Strategic Transformation: The exit from European roto-gravure packaging and surfaces businesses signals a strategic pivot away from traditional brand solutions toward potentially higher-growth segments. This streamlining could lead to improved operational efficiency and better resource allocation to core growth areas.
Execution Considerations: Key transaction risks include regulatory approvals, particularly in European jurisdictions, and buyer financing conditions. The expected completion in Q3 provides a reasonable timeline for these contingencies, though investors should monitor progress toward definitive agreement signing.
The ongoing Board review of strategic alternatives suggests this transaction may be part of a broader corporate transformation, potentially leading to additional value-creating initiatives. The methodical approach to portfolio optimization, evidenced by these sequential transactions, indicates a well-thought-out strategy rather than a rushed disposal of assets.
When Combined with Previously Announced Transaction, Total Upfront Consideration for Divestiture of the SGK Segment to be
Proceeds to be Used for Continued Debt Repayment
PITTSBURGH, Feb. 14, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) (“Matthews” or the “Company”) today announced that it has entered into a letter of intent (“LOI”) for the sale of the remaining operating businesses within the SGK Brand Solutions (“SGK”) reporting segment, which primarily consists of its European roto-gravure packaging and surfaces businesses.
Under the terms of the LOI, Matthews will receive
“The sale of the remaining operating businesses within SGK is another step forward toward a more streamlined business structure and further evidence of our commitment to unlocking the value of our businesses,” said Joseph Bartolacci, Chief Executive Officer of Matthews. “This transaction provides us with additional cash to continue paying down debt. When combined with the sale of these remaining European operating businesses within the SGK reporting segment, the total upfront consideration for the sale of SGK will be
Mr. Bartolacci continued, “The Board’s review of strategic alternatives for our portfolio of businesses remains ongoing and we are committed to maximizing value for our shareholders.”
The transaction is expected to be completed in the third quarter, subject to the execution of a definitive agreement, buyer financing and customary closing conditions, including regulatory approvals.
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
How much is Matthews International (MATW) selling its remaining SGK Brand Solutions businesses for?
What is the total value of MATW's SGK Brand Solutions segment sale?
When is MATW expected to complete the sale of remaining SGK businesses?
How will MATW use the proceeds from the SGK businesses sale?
What assets are included in MATW's remaining SGK Brand Solutions sale?
