Matthews Intl Corp Stock Price, News & Analysis

Matthews International (MATW) has completed the sale of its SGK Brand Solutions business to a new entity formed with SGS & Co. The transaction terms include $350 million in upfront consideration, comprising $250 million in cash, $50 million in preferred equity, and $50 million in retained trade receivables. Matthews will maintain a 40% common equity stake in the new company.

The cash proceeds will be used to reduce Matthews' debt and strengthen its balance sheet. The new entity, led by former SGK Group President Gary R. Kohl as CEO, expects to achieve over $50 million in annual cost synergies and growth opportunities within 30 months. Matthews will report its investment using the equity method of accounting, with SGK no longer fully consolidated in the company's financial statements.

Matthews International (NASDAQ: MATW) reported Q2 fiscal 2025 results with consolidated sales of $427.6 million, down 9.3% from $471.2 million in Q2 2024. The company posted a net loss of $8.9 million ($0.29 per share), compared to net income of $9.0 million in the prior year.

Key highlights include:

• Significant increase in energy storage solutions customer quotes exceeding $100 million since February 2025
• Cost reduction programs on track to exceed $50 million in savings
• SGK transaction expected to close in May 2025, with $350 million upfront consideration plus 40% interest in new entity
• Updated pro forma consolidated adjusted EBITDA projection of at least $190 million for fiscal 2025

The company's performance was impacted by lower sales in Industrial Technologies and Memorialization segments, partially offset by higher SGK Brand Solutions sales. Management remains confident in unlocking shareholder value through strategic alternatives.

Matthews International Corporation (NASDAQ GSM: MATW) has announced its latest quarterly dividend payment. The company's Board of Directors declared a dividend of $0.25 per share on the company's common stock during their regular meeting on April 30, 2025.

Shareholders who are recorded as stockholders by May 12, 2025, will be eligible to receive the dividend payment, which is scheduled for distribution on May 26, 2025. This announcement represents Matthews International's commitment to providing regular returns to its shareholders through dividend distributions.

Matthews International (MATW) has received clearance for all remaining foreign anti-trust and competition authority regulatory requirements regarding the proposed sale of its SGK Brand Solutions division to a new entity formed by SGS & Co affiliates. This follows the February 2025 expiration of the Hart-Scott-Rodino Antitrust waiting period.

The transaction is expected to close before the end of the current fiscal quarter, subject to customary closing conditions. The company plans to use the cash proceeds primarily for debt reduction, with a portion now allocated for stock repurchases given the recent stock value.

Matthews International (MATW) has scheduled the release of its second quarter fiscal 2025 earnings results after market close on Wednesday, April 30, 2025. The company will host a conference call and webcast on Thursday, May 1, 2025, at 9:00 a.m. Eastern Time to discuss financial and operating results along with its outlook.

President and CEO Joseph C. Bartolacci and CFO Steven F. Nicola will lead the conference call, which will include a question-and-answer session. A transcript of the call will be made available in the Investor Relations section of the company's website following the event.

Matthews International announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 for its proposed sale of SGK Brand Solutions. The transaction involves selling Matthews' interest in SGK to a newly formed entity created by affiliates of SGS & Co, which will combine SGK and SGS operations.

The company anticipates closing the transaction in the next quarter, pending receipt of remaining outstanding regulatory approvals and satisfaction of other customary closing conditions. This announcement marks a significant step forward in Matthews' divestiture process as the HSR waiting period expiration removes a key regulatory hurdle for the transaction.

Matthews International (NASDAQ: MATW) announced that shareholders have elected all three of the Company's director nominees at its 2025 Annual Meeting. Based on preliminary vote results, Terry L. Dunlap, Alvaro Garcia-Tunon and J. Michael Nauman have been elected to the Company's Board of Directors.

Board Chair Alvaro Garcia-Tunon stated that the vote outcome validates Matthews' strategy, Board composition, and CEO Joe Bartolacci's leadership, as well as recent governance actions taken in response to shareholder feedback. The company, celebrating its 175th year of continuous operation, acknowledges the need for continued improvement in performance to meet shareholder expectations.

Final results will be certified by the independent Inspector of Elections and filed with the SEC via Form 8-K. J.P. Morgan Securities and Sidley Austin LLP are serving as financial advisor and legal counsel, respectively.

Barington Capital, owning 2.2% of Matthews International (MATW), urges shareholders to vote for their three nominees - Ana Amicarella, Chan Galbato, and James Mitarotonda - at tomorrow's Annual Meeting. The activist investor's push for board changes has received unanimous support from all three leading proxy advisory firms - ISS, Glass Lewis, and Egan-Jones.

Barington criticizes the current board for overseeing prolonged share price underperformance, poor capital allocation, and inadequate corporate governance. They particularly highlight CEO Joseph C. Bartolacci's 18-year tenure as destructive to shareholder value. The company's recent actions, including Gregory S. Babe's resignation, are viewed by Barington as reactive measures prompted by their nomination campaign.

Matthews International (MATW) urges shareholders to vote for its three director nominees - Terry L. Dunlap, Alvaro Garcia-Tunon, and J. Michael Nauman - on the WHITE proxy card, opposing Barington Capital's nominees. The company highlights recent strategic achievements, including:

- Sale of SGK Brands Solutions for $350 million plus 40% equity stake in new joint venture
- Letter of intent for remaining SGK Brand Solutions businesses for $50 million
- Favorable arbitration outcome against Tesla regarding dry battery electrode (DBE) solutions
- Appointment of Thomas Gebhardt, bringing 30+ years of Panasonic experience
- Board governance enhancements including declassification

GAMCO Asset Management, holding 4.38% stake, announced support for Matthews' nominees. The company emphasizes its long-term strategy and warns against Barington's short-term approach.