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PITTSBURGH, May 01, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) (“Matthews” or the “Company”) today announced the successful closing of the sale of its SGK Brand Solutions business (“SGK”) to a newly formed entity created by affiliates of SGS & Co (“SGS”). The transaction combines SGK and SGS into a new company that is expected to be a leading global provider of brand solutions.
Under the terms of the transaction, Matthews received upfront consideration of $350 million, consisting of $250 million in cash at closing, $50 million of preferred equity in the new entity, and the retention of approximately $50 million in trade receivables under its securitization program. Matthews also receives a 40% common equity interest in the new company.
The cash proceeds will be used to significantly reduce Matthews’ outstanding debt, strengthening the Company’s balance sheet and positioning it for future strategic initiatives. The new entity, led by Gary R. Kohl as Chief Executive Officer and Matthew T. Gresge as Executive Chairman, is projected to realize more than $50 million in annual cost synergies and growth opportunities through the combined portfolio of services and clients over the next 30 months, further enhancing the value of Matthews’ ongoing ownership stake. Previously, Mr. Kohl served as the Group President of SGK for seven years at Matthews.
“We are pleased to have successfully closed this transaction,” said Joseph C. Bartolacci, President and Chief Executive Officer of Matthews International. “The sale of SGK accelerates our strategic focus on our core businesses while substantially improving our financial flexibility. We believe the new entity, under Gary’s proven leadership, is well-positioned for strong performance, and Matthews will continue to benefit from its future growth through our minority interest.”
“This combination creates a powerful platform for growth and innovation,” said Gary R. Kohl, Chief Executive Officer of the new entity. “Together, SGK and SGS bring unparalleled capabilities to our clients worldwide. We are excited about the opportunities ahead and deeply appreciate the support from Matthews as we launch this next chapter.”
Matthews will report its investment in the new entity under the equity method of accounting, with the SGK business no longer fully consolidated in the Company’s financial statements.
The Board’s broader strategic review of Matthews’ portfolio remains ongoing, underscoring the Company’s commitment to maximizing shareholder value.
About Matthews International
Matthews International Corporation operates through two core global businesses – Industrial Technologies and Memorialization. Both are focused on driving operational efficiency and long-term growth through continuous innovation and strategic expansion. The Industrial Technologies segment evolved from our original marking business, which today is a leading global innovator committed to empowering visionaries to transform industries through the application of precision technologies and intelligent processes. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. The Company has over 5,400 employees in 19 countries on four continents that are committed to delivering the highest quality products and services.