#USA #New York #Matthews International #Barington Capital #SGK Brand Solutions

Barington Capital's Support for Matthews International's Strategic Move

On January 8, 2025, Barington Capital Group, L.P. released a statement endorsing Matthews International Corporation's decision to sell its SGK Brand Solutions segment. The activist investment firm holds approximately 1.9% of Matthews' outstanding common stock and has been urging the company to streamline its operations since 2022. Barington believes that divesting the underperforming SGK segment represents a significant opportunity for Matthews to enhance shareholder value.

Barington has long expressed that SGK has been a liability for Matthews, with financial setbacks that resulted in a write-down exceeding $266 million. The firm views the sale as a step toward addressing the inefficiencies that have plagued the business. In their statement, Barington mentioned, "While we are pleased that the Company is taking this step today, it is unfortunate that it occurred only after Barington called for changes to Matthews' management and Board of Directors."

With this transaction, Barington Capital signals its continuing commitment to ensuring that Matthews adopts a shareholder-friendly approach moving forward. The firm argues that electing Barington's nominees to the Board would inject necessary new perspectives and expertise into Matthews, which are essential for navigating the company through this transitional phase. These nominees are expected to bring valuable experience in financial strategy and corporate governance with the aim of maximizing shareholder returns.

Barington is well-known for identifying undervalued companies and pushing for operational and strategic improvements. Founded by James Mitarotonda in 2000, the investment firm has established a track record of advocating for necessary changes in companies to unlock value. Barington believes that the SGK transaction exemplifies the kinds of value-creating opportunities that exist within Matthews, and they are optimistic about the company's potential following this strategic shift.

It remains to be seen how Matthews will continue to evolve after this sale. Barington's proactive approach to shareholder advocacy could serve as a critical factor in shaping the company's next steps. For further details on Barington's ongoing efforts, you can visit their official website at barington.com/matthews.

Barington Capital continues to advocate for fundamental changes in companies where they see potential for improvement, and their recent involvement with Matthews International is a strong example of their commitment to maximizing shareholder value. As the new year begins, shareholders will undoubtedly be watching closely to see what comes next for Matthews as they navigate these changes and pursue a more focused and productive operational framework.