Matthews International Updates Strategic Initiatives and Confirms Shareholder Nominations
Matthews International issued the following statement updating shareholders on the Company's ongoing strategic initiatives and confirming receipt of another notice from Barington Capital L.P.'s of its intent to nominate directors for election at a second consecutive Annual Meeting of Shareholders: "In November 2024, we announced that the Board had engaged J.P. Morgan to assist the Company with a review of strategic alternatives. In the year since, the Board and management team have rigorously evaluated the Company's portfolio of businesses, thoughtfully considered shareholder feedback about the Company, and decisively acted to enhance shareholder value. The ongoing strategic review has already simplified the Company's business mix and strengthened our balance sheet: SGK Brand Solutions: In January 2025, the Company announced the sale of the SGK Brand Solutions business to Propelis. Upon closing of the sale in May, the Company realized $350 million of total upfront consideration and received a 40% stake in the common stock of Propelis, allowing the Company's shareholders to benefit from cost synergies and continued business growth... Warehouse Solutions: In November 2025, the Company announced the sale of the Warehouse Automations business to Duravant for total consideration of $230 million, representing cash consideration of $223.3 million plus the assumption of certain liabilities of the business.... Other Transactions: The Company has completed other transactions as part of its strategic review and regular review of its business portfolio, including the acquisition of The Dodge Company and the pending sales of the European packaging and tooling businesses."
Discover Tomorrow's Bullish Stocks Today
Analyst Views on MATW
About MATW
About the author
Matthews International (MATW) Reaches Agreement with Barington Capital, Withdraws Director Nominations
- Director Nomination Withdrawal: Matthews International has reached an agreement with activist investor Barington Capital, which has agreed to withdraw its previously submitted director nominations, indicating a consensus on corporate governance that may help stabilize shareholder confidence.
- Ongoing Strategic Review: Barington Capital emphasized that Matthews' ongoing strategic review and value creation plan are critical for enhancing both near- and long-term shareholder value, which could influence the company's future decision-making direction.
- Stock Price Fluctuation: Despite the agreement, Matthews International's shares fell by 1.8%, reflecting market concerns regarding corporate governance and strategic execution, potentially impacting investor confidence in the company's future performance.
- Management Dialogue: Barington Capital Chairman Mitarotonda noted that the dialogue between both parties has been positive, and the agreement signifies improved communication between management and shareholders, potentially laying the groundwork for future collaboration.
Barington Withdraws Nominations to Matthews' Board, Strategic Review Continues
- Nomination Withdrawal: Barington Capital's agreement to withdraw its director nominations for Matthews International's board indicates a constructive consensus on corporate governance and strategic review, which is expected to enhance shareholder confidence.
- Strategic Review Advancement: Over the past 12 months, Matthews has implemented several measures to simplify its business mix and strengthen its balance sheet, aiming to create long-term shareholder value through ongoing strategic reviews.
- Governance Improvement: The Chairman of Matthews' board noted that the dialogue with Barington provided valuable insights for enhancing corporate governance, with plans to further drive governance changes to achieve higher shareholder value.
- Legal Compliance Assurance: Under the agreement, Barington will adhere to standstill provisions and other restrictions, ensuring compliance as Matthews advances its strategic review and governance improvements, thereby mitigating potential legal risks.
