Matthews Intl Corp Stock Price, News & Analysis

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.