Pittsburgh-based Matthews International Corp. announced it would be selling the remainder of its operating businesses within the SGK Brand Solutions reporting segment.
The company said it had signed a letter of intent to sell the businesses, primarily consisting of its European roto-gravure packaging and surfaces businesses. Under the terms of the deal, Matthews will receive $50 million, mostly in cash, which it will apply to repayment of debt. When combined with a previous deal announced in January to sell its interest in SGK, the sales will raise more than $400 million.
“The sale of the remaining operating businesses within SGK is another step forward toward a more streamlined business structure and further evidence of our commitment to unlocking the value of our businesses,” Joseph Bartolacci, CEO of Matthews, said.
“This transaction provides us with additional cash to continue paying down debt,” he said. “When combined with the sale of these remaining European operating businesses within the SGK reporting segment, the total upfront consideration for the sale of SGK will be $400 million, implying a total current value of the segment in excess of $600 million. Once the new entity of our previously announced transaction is fully synergized and we dispose of our investment in our operating software, we expect the total realized value of the divestiture of this segment to exceed $700 million,” said the CEO of Matthews, a global provider of memorialization products, industrial technologies, and brand solutions.
The transaction is expected to be completed in the fall of 2025, officials said, and is still subject to buyer financing, closing conditions and regulatory approvals.
“The Board’s review of strategic alternatives for our portfolio of businesses remains ongoing and we are committed to maximizing value for our shareholders,” Bartolacci said.