Matthews Intl Corp Stock Price, News & Analysis

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) has received significant support from sell-side analysts following its fiscal 2025 Q1 earnings announcement. The company reported solid performance in Memorialization and SGK Brand Solutions segments, while Industrial Technologies faced challenges due to Tesla litigation. An arbitrator recently ruled in Matthews' favor, confirming their right to sell Dry Battery Electrode (DBE) solutions to customers beyond Tesla.

Analysts highlighted several positive aspects, including the DBE technology's potential in the EV market, with its process reducing energy and labor costs by 75% and requiring 70% less capital investment. Multiple analysts provided optimistic price targets, with CJS Securities suggesting a $42 target, representing ~60% upside potential. GAMCO Asset Management, a top 5 shareholder, endorsed Matthews' director nominees, supporting the company's current strategy and leadership.

Barington Capital, owning approximately 2.1% of Matthews International (NASDAQ: MATW), has sent a letter to shareholders urging them to vote for their three director nominees to the Matthews Board. The letter highlights that all three leading proxy advisory firms - ISS, Glass Lewis, and Egan-Jones - have unanimously recommended shareholders vote in favor of Barington's nominees: Ana B. Amicarella, Chan W. Galbato, and James Mitarotonda.

Barington emphasizes Matthews' poor fiscal 2025 first quarter earnings results as evidence of management's pattern of unfulfilled promises. The activist investor believes their nominees bring necessary skills and fresh perspectives to drive meaningful change and long-term value creation at Matthews.

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) reported Q1 fiscal 2025 results with sales of $401.8 million, down 10.7% from $450.0 million in Q1 2024. The company posted a net loss of $3.5 million ($0.11 per share) compared to a $2.3 million loss ($0.07 per share) in the prior year. Adjusted EBITDA decreased to $40.0 million from $45.5 million.

The company maintains its fiscal 2025 adjusted EBITDA outlook of $205-215 million. A positive arbitration ruling affirmed Matthews' right to sell its DBE technology. The planned SGK Brand Solutions transaction, expected to complete by mid-2025, will yield $350 million upfront including $250 million cash plus a 40% interest in the new entity. The company expects to achieve cost reductions of at least $50 million through ongoing initiatives.

The Memorialization segment saw lower sales due to decreased U.S. deaths, while SGK Brand Solutions reported modest sales growth. Industrial Technologies experienced declining sales, primarily due to reduced Tesla project work and litigation impact.

Matthews International (MATW) received a favorable arbitration ruling against Tesla on February 5, 2025, confirming the company's right to sell its proprietary Dry Battery Electrode (DBE) technology to other customers in the electric vehicle market. The decision acknowledged Matthews' extensive pre-Tesla experience in manufacturing DBE technology.

The dispute began over a year ago when Matthews sought a declaratory judgment through arbitration regarding its rights to sell DBE solutions. Tesla subsequently filed federal court litigation alleging trade secret theft. Matthews was recently awarded U.S. Patent No. 12,136,727 B2 for DBE manufacturing systems on November 5, 2024.

CEO Joseph C. Bartolacci emphasized that this ruling validates their rights to the technology and their decade-long experience in the battery space. The company plans to immediately resume marketing and delivering DBE products to battery and automobile manufacturers globally.

Matthews International (MATW) issued a letter to shareholders highlighting support from GAMCO Asset Management, a top 5 shareholder with 4.38% stake, for the company's director nominees ahead of the Annual Meeting. The letter addresses the proxy contest with Barington, emphasizing Matthews' 175-year evolution from a hand stamp business to a diversified company with memorialization products, industrial technologies, and brand solutions.

The Board urges shareholders to vote for their nominees - Terry L. Dunlap, Alvaro Garcia-Tunon, and J. Michael Nauman - on the WHITE proxy card. The company criticizes Barington's nominees for their lack of understanding of Matthews' businesses and questions their track record in other companies. Matthews defends its strategic evolution, particularly highlighting the development of its energy storage business and the value generated through strategic acquisitions like Saueressig in 2008 and Schawk in 2014.

Barington Capital, owning 1.9% of Matthews International (NASDAQ: MATW), has sent a letter to shareholders criticizing the company's recent 68-page investor presentation and management's approach. The activist investor highlights what it describes as Matthews' 'longstanding culture of deceit' and argues that the status quo is unsustainable.

Barington claims Matthews has failed over the past 18 years to take meaningful action in simplifying its portfolio, conducting strategic reviews, reducing costs and debt, or addressing Board independence. The investor group is pushing for the election of Ana Amicarella, Chan Galbato and James Mitarotonda to Matthews' Board of Directors, arguing these changes are important for unlocking the company's full value potential.

Matthews International (MATW) has announced its Board of Directors has declared a quarterly dividend of $0.25 per share on the Company's common stock. The dividend will be payable on February 24, 2025, to stockholders of record as of February 10, 2025. This declaration was made during the board's regularly scheduled meeting on January 29, 2025.