Matthews Intl Corp Stock Price, News & Analysis

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.

Barington Capital Group, owning approximately 2% of Matthews International (NASDAQ: MATW), has sent a letter to the company's Board Chairman demanding immediate leadership changes and strategic reforms. The activist investor criticizes CEO Joseph Bartolacci's 18-year tenure, citing a 20.2% share price decline, increased debt, and poor capital returns.

Barington recommends several key actions: exploring divestiture of the SGK Brand Solutions segment, reviewing Warehouse Automation and Product Identification businesses, increasing cost reduction targets from $50M to $80M, and reducing debt. The investor has nominated three directors for the 2025 annual meeting and calls for declassifying the staggered Board.

Matthews International (MATW) reported Q4 FY2024 consolidated sales of $446.7 million, down 7% from $480.2 million in Q4 FY2023. Full-year sales reached $1.80 billion, a 4.5% decrease from prior year. The company reported a Q4 net loss of $68.2 million, compared to net income of $17.7 million last year. Adjusted EBITDA for Q4 was $58.1 million, down from $61.9 million. The company reduced outstanding debt by $53.8 million during the quarter and set FY2025 adjusted EBITDA guidance of $205-215 million. Notable developments include ongoing cost reduction programs, improved performance in SGK Brand Solutions, and customer delays in the energy business.

Matthews International (NASDAQ: MATW) has announced a quarterly dividend increase to $0.25 per share on its common stock. This marks the company's 31st consecutive annual dividend increase since becoming publicly traded. The dividend will be payable on December 16, 2024, to stockholders of record as of December 2, 2024. The company's CEO expressed confidence in their cash generation capabilities and long-term growth strategies.

Matthews International (MATW) has announced it will release its fourth quarter and fiscal year 2024 earnings results after market close on Thursday, November 21, 2024. The company will host a conference call and webcast on Friday, November 22, 2024, at 9:00 a.m. Eastern Time to discuss financial and operating results, as well as its outlook. President and CEO Joseph C. Bartolacci and CFO Steven F. Nicola will participate in the call, which will include a question-and-answer session. A transcript will be posted in the Investor Relations section of the company's website following the call.

Matthews International (NASDAQ GSM: MATW) has successfully completed a $300 million private offering of 8.625% senior secured second lien notes due 2027. The notes, which closed on September 27, 2024, will pay interest semi-annually and mature on October 1, 2027. They are callable in one year, providing flexibility in the current high-interest rate environment.

The company plans to use the net proceeds, along with borrowings under its senior credit facility, to redeem all outstanding senior notes due December 1, 2025. This redemption is scheduled for around October 24, 2024. CEO Mr. Bartolacci expressed satisfaction with the well-oversubscribed offering, highlighting its role in maintaining the company's financial stability and supporting strategic business plans.