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Overview of Matthews International Corporation
Matthews International Corporation (NASDAQ: MATW) is a globally diversified company operating across three primary business segments: Brand Solutions, Memorialization, and Industrial Technologies. With a history spanning over 175 years, the company has built a robust reputation for delivering innovative, high-quality products and services to a wide range of industries. Headquartered in Pittsburgh, Pennsylvania, Matthews maintains a significant global presence, with operations in more than 30 countries and a workforce of over 11,000 employees.
Brand Solutions Segment
Matthews’ Brand Solutions segment specializes in providing comprehensive packaging and brand management services. Through its acquisition of SGK, a globally recognized brand activation and deployment company, Matthews supports consumer packaged goods (CPG) companies by ensuring consistency in brand standards across packaging components. This segment offers services such as creative design, printing equipment, and embossing tools, helping businesses amplify their brand presence and streamline marketing efforts. By leveraging its expertise in packaging solutions, Matthews plays a critical role in enhancing the market performance of its clients.
Memorialization Segment
A cornerstone of Matthews’ operations, the Memorialization segment serves the funeral and cemetery industries with a comprehensive range of products and services. These include bronze and granite memorials, caskets, cremation equipment, and related products designed to help families honor and remember their loved ones. With over a century and a half of experience, Matthews has become a trusted partner for funeral homes and cemeteries worldwide. This segment’s consistent cash flow underscores its importance to the company’s overall financial stability.
Industrial Technologies Segment
The Industrial Technologies segment represents Matthews’ commitment to innovation and technological advancement. This division focuses on the design, manufacturing, and distribution of cutting-edge solutions, including high-tech energy storage systems, product identification technologies, and warehouse automation solutions. Notably, Matthews has made significant strides in the development of dry battery electrode (DBE) technology, which supports the growing electric vehicle (EV) market. By addressing critical industrial needs, this segment positions Matthews as a forward-thinking leader in industrial technology.
Global Reach and Market Significance
Matthews International’s operations span six continents, enabling the company to serve diverse markets and industries effectively. Its global footprint and diversified business model provide resilience against economic fluctuations and industry-specific challenges. The company’s ability to integrate traditional craftsmanship with modern technological solutions sets it apart in competitive landscapes.
Competitive Landscape
In the Brand Solutions segment, Matthews competes with other packaging and branding firms, differentiating itself through its global capabilities and comprehensive service offerings. The Memorialization segment faces competition from regional and global providers of memorial products, while the Industrial Technologies segment contends with other innovators in energy storage and automation technologies. Matthews’ strategic focus on innovation, quality, and customer-centric solutions enables it to maintain a competitive edge.
Commitment to Quality and Innovation
Matthews International’s long-standing commitment to quality and innovation is evident across all its business segments. By continuously investing in research and development, the company ensures its offerings remain relevant and impactful. This dedication to improvement not only enhances customer satisfaction but also solidifies Matthews’ position as a trusted partner in its industries.
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.
Matthews International (MATW) has sent a letter to shareholders regarding the upcoming Annual Meeting on February 20, 2025, emphasizing their commitment to long-term value creation. The company recently announced the strategic sale of SGK Brand Solutions for $350 million in upfront consideration plus 40% equity in the combined business, valued at approximately $900 million.
The Board highlights that the SGK transaction, which began in 2019 and is expected to close by mid-2025, resulted in a 15% stock price increase upon announcement. The company plans to use the cash proceeds for debt reduction and is currently evaluating strategic alternatives for all businesses with J.P. Morgan's assistance.
The letter urges shareholders to vote for Matthews' three director nominees - Terry L. Dunlap, Alvaro Garcia-Tunon, and J. Michael Nauman - on the WHITE proxy card, opposing Barington Capital's nominees, whom they argue lack critical skills and focus on short-term gains.
Barington Capital, owning 1.9% of Matthews International (MATW), has sent a letter to shareholders promoting its three director nominees for the company's Board. The activist investor criticizes the current Board as entrenched and unable to hold management accountable for 18 years of value erosion under CEO Joseph Bartolacci.
The three nominees - Ana Amicarella, Chan Galbato, and James Mitarotonda - are presented as highly accomplished executives with relevant sector expertise and CEO experience. Barington argues these nominees will help enhance corporate governance, improve cash flow, focus business operations, and restore share price performance.
Barington is urging shareholders to vote using the GOLD proxy card in favor of all their nominees, emphasizing the need for change in leadership to unlock the company's embedded value.
Matthews International (MATW) has announced it will release its first quarter fiscal 2025 earnings results after market close on Thursday, February 6, 2025. The company will host a conference call and webcast on Friday, February 7, 2025, at 9:00 a.m. Eastern Time to discuss financial and operating results along with its outlook.
The conference call will feature President and CEO Joseph C. Bartolacci and CFO Steven F. Nicola, followed by a question-and-answer session. A transcript of the call will be made available in the Investor Relations section of the company's website after the event.
Barington Capital Group, owning approximately 1.9% of Matthews International (NASDAQ: MATW), has filed a definitive proxy statement nominating three directors - Ana B. Amicarella, Chan W. Galbato, and James Mitarotonda - for election to Matthews' Board at the 2025 Annual Meeting.
The activist investor has outlined a four-step plan for long-term value creation, criticizing the current Board and CEO for share price underperformance, poor operational execution, capital allocation, and excessive spending. Barington notes that Matthews recently announced the sale of its SGK Brand Solutions segment, implementing one of Barington's recommendations, but claims this action was taken only after pressure from their potential proxy solicitation.
Barington believes new directors with fresh perspectives and significant business experience are important for improving corporate governance, strategic focus, return on invested capital, and revenue growth.
Matthews International (MATW) has filed definitive proxy materials for its upcoming Annual Meeting on February 20, 2025. The company recently announced the sale of SGK Brand Solutions for $350 million, with $250 million in immediate cash proceeds intended for debt reduction. The transaction values SGK at approximately $900 million, representing a 9x EBITDA multiple.
The Board urges shareholders to vote 'FOR' their three director nominees - Terry L. Dunlap, Alvaro Garcia-Tunon, and J. Michael Nauman - on the WHITE proxy card, opposing Barington Capital's competing nominees. The company reported $1.8 billion in consolidated revenue for fiscal 2024 and is currently evaluating strategic alternatives for its portfolio, with several initiatives expected to be announced throughout fiscal 2025.
Matthews maintains that the SGK sale was planned before Barington's involvement and represents a strategic move to streamline the business structure while retaining a 40% ownership interest in the new entity, which expects to achieve $50 million in annual cost synergies.
Barington Capital Group, owning approximately 1.9% of Matthews International (NASDAQ: MATW), has issued a statement regarding Matthews' planned sale of its SGK Brand Solutions segment. The activist investor highlighted that since 2022, they have been advocating for Matthews to simplify its portfolio, specifically proposing the sale of SGK, which has resulted in a write-down of more than $266.2 million under Matthews' ownership.
While Barington welcomes the sale decision, they note it came only after their calls for changes to Matthews' management and Board of Directors. The investor believes this transaction demonstrates available value-creating opportunities and emphasizes the importance of having Barington's nominees on Matthews' Board to bring fresh perspectives and expertise in finance, corporate strategy, and turnaround management.
Matthews International (MATW) has announced the sale of its SGK Brand Solutions division to a newly formed entity created by SGS & Co affiliates. The deal structure includes $350 million in upfront consideration, comprising $250 million in cash, $50 million in preferred equity, and $50 million in retained trade receivables. Matthews will also receive a 40% stake in the new entity's common equity.
The new entity, valued at approximately $900 million, represents a 9x adjusted EBITDA multiple. It is expected to achieve over $50 million in annual cost synergies over a 30-month integration period. Matthews will retain its German roto-gravure packaging business and related investments. The immediate cash proceeds will be used primarily for debt reduction. The transaction is expected to complete in mid-2025, subject to regulatory approvals.
Barington Capital Group, owning approximately 2% of Matthews International (MATW), has filed a preliminary proxy statement to nominate three directors to Matthews' Board at the 2025 Annual Meeting. The nominees are Ana B. Amicarella, Chan W. Galbato, and James Mitarotonda.
The action follows what Barington describes as years of stock price underperformance, poor capital allocation, and excessive spending under CEO Joseph Bartolacci's 18-year tenure. Barington calls for a new CEO and a refreshed, declassified Board to enhance shareholder value. The investment firm cites Matthews' underperformance compared to its peer group, the S&P 500, and the Russell 2000.
Matthews International (MATW) has responded to Barington Capital's recent statement and nomination notice, highlighting strong performance across its core businesses. The company reports improvements in its Memorialization segment through pricing actions and strategic acquisitions, while SGK achieved three consecutive quarters of higher sequential sales. The Industrial Technologies segment anticipates demand recovery in fiscal 2025, and the Energy Solutions business maintains strong interest in its innovative solutions.
The company has retained J.P. Morgan to evaluate strategic alternatives and recently declared its 31st consecutive annual dividend increase. Under CEO Joseph Bartolacci's leadership, Matthews has grown from $700 million to $1.8 billion in revenues. The company maintains an active dialogue with Barington Capital, though recent attempts to continue consulting were unsuccessful.
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