Matthews International Cashes In: Another $50M Sale Advances Debt Reduction Plan

Matthews International Corporation MATW has announced its intent to sell the remaining operations within its SGK Brand Solutions segment, which includes its European roto-gravure packaging and surface businesses.

Under the letter of intent terms, the company will receive $50 million, primarily in cash, to reduce its debt. This follows a previously announced $350 million transaction for selling its SGK interests, reinforcing Matthews’ strategic shift and financial restructuring.

The transaction will provide Matthews International with additional liquidity to reduce debt, bringing the total upfront consideration for the SGK Brand Solutions divestiture to $400 million. The segment is valued at over $600 million. Once the new entity is fully integrated and the company divests its operating software investment, the total realized value is expected to exceed $700 million.

The transaction is expected to close in the third quarter, subject to the execution of a definitive agreement, buyer financing, and customary regulatory approvals.

“The sale of the remaining operating businesses within SGK is another step toward a more streamlined business structure and further evidence of our commitment to unlocking the value of our businesses,” stated Joseph Bartolacci, Chief Executive Officer of Matthews International.

Bartolacci also emphasized that the Board’s review of strategic alternatives for the company’s business portfolio remains ongoing, focusing on maximizing shareholder value.

Price Action: MATW shares are trading higher by 3.84% at $25.93 premarket at the last check Friday.

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