Matthews International Announces Closing of SGK Brand Solutions Sale

Core Insights - Matthews International Corporation successfully closed the sale of its SGK Brand Solutions business to a new entity formed by affiliates of SGS & Co, creating a leading global provider of brand solutions [1][2] - The transaction provided Matthews with $350 million in upfront consideration, including $250 million in cash, $50 million in preferred equity, and retention of approximately $50 million in trade receivables [2] - Matthews retains a 40% common equity interest in the new company, which is expected to achieve over $50 million in annual cost synergies and growth opportunities within the next 30 months [2][3] Financial Impact - The cash proceeds from the sale will be utilized to significantly reduce Matthews' outstanding debt, thereby strengthening its balance sheet and enhancing financial flexibility for future strategic initiatives [3] - The new entity is projected to enhance the value of Matthews' ongoing ownership stake through combined services and client portfolios [3] Leadership and Strategic Focus - Gary R. Kohl has been appointed as the CEO of the new entity, with Matthew T. Gresge as Executive Chairman, both expected to drive growth and innovation [3][4] - The sale allows Matthews to concentrate on its core businesses, improving its strategic focus while benefiting from the future growth of the new entity through its minority interest [4][5] Company Overview - Matthews International operates through two main segments: Industrial Technologies and Memorialization, focusing on operational efficiency and long-term growth through innovation and strategic expansion [6] - The Industrial Technologies segment is recognized as a global innovator, while the Memorialization segment provides essential products to cemetery and funeral home customers [6]