Matthews Sells Warehouse Automation Business for $232.1 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Significant Transaction Value: Matthews successfully closed the sale of its Warehouse Automation business for a total consideration of $232.1 million, including $225.4 million in cash, demonstrating effective asset management and strategic decision-making.
- Debt Reduction Strategy: Proceeds from the transaction will be used to significantly reduce outstanding debt, aiding the company in achieving its long-term net leverage ratio target of 2.5x, thereby enhancing financial stability.
- Ongoing Strategic Review: The strategic review at Matthews remains active, aimed at further enhancing shareholder value, indicating the company's commitment to exploring future growth opportunities.
- Strong Business Performance: The Warehouse Automation business generated $72 million in sales for fiscal 2025, reflecting its market potential and attractiveness, which underpins the rationale for the transaction.
Analyst Views on MATW
Wall Street analysts forecast MATW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MATW is 40.00 USD with a low forecast of 40.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 26.470
Low
40.00
Averages
40.00
High
40.00
Current: 26.470
Low
40.00
Averages
40.00
High
40.00
No data
About MATW
Matthews International Corporation is a provider of memorialization products and industrial technologies. The Company operates through two core global businesses: Industrial Technologies and Memorialization. The Industrial Technologies segment includes the design, manufacturing, service and sales of high-tech custom energy storage solutions; product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products; and coating and converting lines for the packaging, pharma, foil, decor and tissue industries. The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, including memorials, caskets and cremation and incineration equipment, primarily for cemetery and funeral home customers that help families move from grief to remembrance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
