#USA #Pittsburgh #warehouse automation #Matthews International #Duravant LLC

Matthews International Finalizes Sale of Warehouse Automation Division

On December 31, 2025, Matthews International Corporation announced the successful completion of the sale of its Warehouse Automation segment to Duravant, LLC. This move marks a significant milestone for Matthews, as the company aims to streamline operations and reduce outstanding debt. The total consideration for the transaction was an impressive $232.1 million, which includes a cash component of $225.4 million alongside the assumption of specific liabilities associated with the automation business.

Matthews’ Warehouse Automation division has been a substantial contributor to the company, reporting sales of $72 million in the past fiscal year. However, in light of ongoing strategic evaluations, the decision to sell was part of a broader strategy to enhance shareholder value and manage the company’s financial health more effectively.

Strategic Decision to Unlock Shareholder Value

Joseph C. Bartolacci, the company's President and CEO, expressed confidence in the sale, indicating that this transaction aligns with Matthews’ long-term goals. By prioritizing debt reduction and utilizing the proceeds from this sale, Matthews aims to achieve a targeted net leverage ratio of 2.5x. Bartolacci noted that the valuation multiple for this purchase reflects a compelling opportunity for the company and its stakeholders, enhancing Matthews’ performance in the current trading landscape.

The sale to Duravant, recognized for its expertise in automation solutions, is expected to provide an operational boost while allowing Matthews to focus on its two core business segments—Industrial Technologies and Memorialization. The Industrial Technologies segment has evolved from Matthews’ original marking business into a global leader in innovation, dedicated to empowering design and operational efficiencies through advanced technologies. The Memorialization segment continues to serve customers with high-quality memorial products, helping families transition from grief to remembrance during challenging times.

Future Vision and Continued Transformations

This move reinforces Matthews International’s ongoing commitment to refining its business portfolio and maximizing overall organizational efficiency. While this sale marks a pivotal moment, the company is also exploring additional strategic alternatives and opportunities for future growth.

In addition to the sale, Matthews maintains a significant investment in Propelis, a brand solutions organization formed from the merger of SGK and SGS Co. Propelis offers integrated solutions from branding to creative content production, adding an important dimension to Matthews' service offerings. The company’s workforce consists of over 5,400 employees operating across 19 countries, all focused on delivering exceptional product quality and service.

As Matthews continues to adapt to market changes and internal evaluations, stakeholders can expect further developments that could shape the company’s future strategies and growth trajectories. The ongoing reviews highlight Matthews International's proactive approach towards maintaining shareholder value and navigating the complexities of the current economic landscape.

Looking Ahead

In summary, the sale of the Warehouse Automation division is a strategic decision aimed at reinforcing Matthews’ financial standing and operational focus. With the funds acquired from this transaction, Matthews International Corporation is better positioned to realize its vision of innovation, efficiency, and value creation in both its existing and future ventures. Stakeholders and investors will surely be watching closely as the company embarks on its next chapter, ensuring that it remains a key player in the marketplace while honoring its commitments to both shareholders and clients alike.

For additional details, you can visit Matthews International’s official site.