Matthews International Announces Closing of Warehouse Automation Sale
Rhea-AI Summary
Matthews International (NASDAQ: MATW) announced the closing of the sale of its Warehouse Automation business to Duravant, LLC on Dec. 31, 2025. Matthews received $232.1 million in total consideration, consisting of $225.4 million cash plus assumption of certain liabilities. The Warehouse Automation business reported $72 million in sales for fiscal 2025. The company said proceeds, net of taxes and transaction costs, will be used to significantly reduce outstanding debt as part of an ongoing strategic alternatives review and toward a long-term net leverage ratio goal of 2.5x.
Positive
- $232.1M total consideration received
- $225.4M cash component of purchase price
- Warehouse Automation had $72M sales in fiscal 2025
- Proceeds designated to significantly reduce outstanding debt
Negative
- Sale removes a business that generated $72M of sales in fiscal 2025
- Strategic alternatives review remains ongoing, creating near-term uncertainty
News Market Reaction – MATW
On the day this news was published, MATW declined 1.32%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves: DLX (-1.26%), TTI (-1.16%), FIP (-2.13%) down while CRESY (+1.16%) and CODI (+2.32%) are up. Only one momentum peer (FBYD, +5.28%) appeared, with no related news, indicating this MATW headline is largely stock-specific rather than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 07 | Strategic update | Positive | +3.0% | Update on portfolio simplification, asset sales, and balance sheet strengthening. |
| Nov 20 | Earnings results | Neutral | -0.6% | Reported Q4 and FY2025 sales and EBITDA outlook including Propelis stake. |
| Nov 19 | Dividend increase | Positive | +1.2% | Announced higher quarterly dividend and highlighted cash generation strength. |
| Nov 19 | Board transition | Neutral | +1.2% | Planned transition to a new Board Chair after 2026 annual meeting. |
| Nov 13 | Business sale pact | Positive | +8.1% | Definitive agreement for Duravant to acquire Matthews Automation Solutions. |
Across the last five news events, MATW’s share price moved in the same direction as the apparent sentiment on every occasion, often reacting positively to portfolio simplification, capital returns, and strategic updates.
Over the last few months, Matthews International has focused on portfolio reshaping, balance sheet improvement, and shareholder returns. On Nov 13, 2025, it agreed to sell Matthews Automation Solutions to Duravant, which saw an 8.1% price gain. A dividend increase on Nov 19, 2025 and subsequent governance and strategic updates also drew generally positive reactions. Today’s completed warehouse automation sale and debt-reduction plan continue this theme of monetizing assets while pursuing ongoing strategic alternatives to enhance shareholder value.
Market Pulse Summary
This announcement confirms the closing of the Warehouse Automation sale to Duravant for total consideration of $232.1M, including $225.4M in cash, with proceeds earmarked to reduce debt and support a long‑term net leverage goal of 2.5x. It extends a broader portfolio‑simplification trend seen in recent quarters. Investors may watch upcoming updates on leverage metrics, capital allocation, and how earnings mix evolves post‑divestiture.
Key Terms
net leverage ratio financial
AI-generated analysis. Not financial advice.
Matthews received
The proceeds from the transaction, net of taxes and transaction costs, will be used to significantly reduce outstanding debt.
Matthews' strategic review remains ongoing.
Joseph C. Bartolacci, President and Chief Executive Officer of Matthews International, stated: "This transaction is a direct outcome of the strategic alternatives evaluation, reflecting our commitment to unlocking shareholder value and further reducing our debt toward our long-term net leverage ratio goal of 2.5x. The total purchase price represents a compelling valuation multiple that is significantly accretive to Matthews' current trading range. Following this announcement, the Company's strategic alternatives review to enhance shareholder value creation remains ongoing."
About Matthews International Corporation
Matthews International Corporation operates through two core global businesses – Industrial Technologies and Memorialization. Both are focused on driving operational efficiency and long-term growth through continuous innovation and strategic expansion. The Industrial Technologies segment evolved from our original marking business, which today is a leading global innovator committed to empowering visionaries to transform industries through the application of precision technologies and intelligent processes. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. In addition, the Company also has a significant investment in Propelis, a brand solutions business formed through the merger of SGK and SGS & Co. Propelis delivers integrated solutions including brand creative, packaging, print solutions, branded environments, and content production. Matthews International has over 5,400 employees in 19 countries on four continents that are committed to delivering the highest quality products and services.
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 benefits and risks associated with the joint venture transaction with Peninsula Parent LLC, d.b.a. Propelis Group ("Propelis") and the timing thereof, 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 risks to our ability to achieve the anticipated benefits of the joint venture transaction with Propelis that closed in fiscal year 2025, 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
Matthews International Corporation
Corporate Office
Two NorthShore Center
Phone: (412) 442-8200
Contacts:
Dan Stopar
Matthews International
Chief Financial Officer and Treasurer
Nick Capuano / Kelly Whitten
Kekst CNC
Media Relations
matw@kekstcnc.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/matthews-international-announces-closing-of-warehouse-automation-sale-302651291.html
SOURCE Matthews International Corporation
FAQ
How much did Matthews (MATW) receive from the Warehouse Automation sale?
Who bought Matthews' Warehouse Automation business and when did the deal close?
How will the sale proceeds affect Matthews' (MATW) debt position?
What were Warehouse Automation sales before the sale?
Did Matthews assume any liabilities or how was the consideration structured?
Is Matthews' strategic review complete after the sale of Warehouse Automation?
