Matthews International Completes Sale of European Packaging and Tooling Businesses

Matthews International Corporation, listed under NASDAQ (GSM: MATW), has announced the successful closure of the sale of its European roto-gravure packaging and tooling operations. This strategic move is viewed as a significant step in the company's ongoing efforts to streamline its business structure and bolster its financial sustainability.

The total agreement for the sale amounts to $41 million, broken down into various components: $22 million will be received in cash, alongside $12 million attributed to assumed debts and pension obligations. The transaction also includes $7 million in seller financing. Upon closing, Matthews received $18 million immediately, with an additional $4 million slated to follow within six months from the closure date.

David Bartolacci, the President and CEO of Matthews International, commented on this transaction, expressing that it is an important step towards unlocking the company’s inherent value while focusing on reducing debt. He noted that these businesses had reached a break-even point in Adjused EBITDA for the past two fiscal years, generating approximately $100 million in sales annually. Bartolacci further stated that all cash proceeds from this sale would be immediately allocated to debt reduction.

About Matthews International Corporation

Operating on a global scale, Matthews International Corporation primarily focuses on two key sectors: Industrial Technologies and Memorialization. Both segments are committed to driving efficiency and long-term expansion through continuous innovation.

The Industrial Technologies division has evolved from its origins in marking, growing into a pioneer in precision technologies and intelligent processes aimed at empowering innovators across different industries. The Memorialization sector is a premier supplier of memorial products, including caskets, cremation and incineration equipment, and memorials, catering mainly to funeral homes and cemeteries to help families navigate their grieving processes.

Additionally, Matthews boasts a significant investment in Propelis, a branding solutions enterprise that emerged from the merger between SGK and SGS Co. Propelis provides integrated services encompassing brand creativity, packaging, print solutions, branded environments, and content production. The corporation has a robust workforce of over 5,400 employees spread across 19 countries and committed to delivering high-quality products and services.

Future Outlook

As Matthews International continues to navigate the complex landscape of market challenges, it is clear that the company is focused on a more streamlined approach to its operations. With the recent sale of its European packaging and tooling businesses, there are expectations for improved financial health and stability, with ongoing initiatives aimed at debt reduction. However, Matthews also cautions of various risks that may affect the company’s performance moving forward, including economic conditions, currency fluctuations, and industry competition.

The corporation's forward-looking strategies are vital as it aims to refine its business models and strengthen its position in both existing and new markets through careful planning and strategic investments. As this company evolves, stakeholders await further updates on its progress and performance following this significant transaction.

In conclusion, Matthews International’s sale marks a pivotal moment in its journey, reflecting its commitment to reactively adapt to the business environment and orchestrate robust financial strategies that favor long-term growth.