Matthews Intl Corp Stock Price, News & Analysis

Matthews International (MATW) has appointed Thomas Gebhardt to its Board of Directors, following Gregory Babe's resignation. Gebhardt brings over 30 years of experience from Panasonic, where he served as Chairman and CEO of North American operations. Under his leadership, Panasonic transformed from a consumer electronics company to a provider of industrial and technology solutions.

Gebhardt's notable achievements include expanding Panasonic's Automotive business to $2.8 billion in revenue over five years and growing the battery business from millions to billions in revenue. He led Panasonic's partnership with Toyota and was involved in developing the Tesla Gigafactory in Reno. Most recently, he served as Interim CEO of Imprint Energy until its acquisition by CCL Industries in 2023.

Matthews International (NASDAQ: MATW) announced that a U.S. District Court Judge has denied Tesla's renewed attempt to block Matthews from selling its dry battery electrode (DBE) technology to global customers. This follows a February 6, 2025 arbitration ruling in Matthews' favor regarding the same matter. Tesla responded with two additional legal challenges in the Northern District of California within seven days.

On February 14, 2025, Judge Edward Davila rejected Tesla's request for a temporary restraining order. Tesla promptly filed another lawsuit, which Matthews describes as meritless and a bullying tactic. Matthews emphasizes that its DBE technology development began over 25 years ago, before Tesla's existence, leading to U.S. Patent No. 12,136,727. The technology streamlines lithium-ion battery production and reduces electric vehicle production costs.

Barington Capital, owning 2.2% of Matthews International (MATW), has issued a critical response to Matthews' recent corporate governance changes, calling them a desperate last-minute attempt to maintain status quo before the upcoming board election. Barington highlights that Matthews previously rejected their proposal to declassify the staggered board, and criticizes the retention of Greg Babe as director despite his involvement in a failed $3.1 million investment in Liquid X Printed Metals.

The activist investor also questions Matthews' timing in announcing a letter of intent to sell SGK Brand Solutions businesses without a definitive agreement. Barington urges shareholders to vote their GOLD proxy card for all of their nominees, arguing that only their independent candidates can enhance board accountability and maximize shareholder value.

Matthews International announced significant board refreshment and corporate governance changes. The company will transition to a new independent Board Chair by 2026, with current Chair Alvaro Garcia-Tunon retiring. The board plans to appoint a new independent director with expertise in batteries and EV technology, replacing Gregory S. Babe.

Key governance changes include: board declassification over three years, implementation of majority voting for director elections, and elimination of supermajority voting requirements for certain article amendments. These changes will be proposed at the 2026 Annual Meeting.

The company recently announced the sale of SGK Brand Solutions for $350 million plus 40% equity stake in a new joint venture, and has a letter of intent to sell remaining SGK operations for $50 million. Additionally, an arbitrator confirmed Matthews' right to sell its Dry Battery Electrode technology to customers beyond Tesla, opening opportunities in the EV market.

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.