Barington Capital Advocates for Change at Matthews Int'l Corporation to Restore Shareholder Value
On January 23, 2025, Barington Capital Group, L.P. released a detailed investor presentation aimed at Matthews International Corporation, highlighting significant concerns about the company’s recent performance and advocating for urgent changes in its leadership. Barington, which holds around 1.9% of Matthews’ outstanding shares, argues that the current board and CEO have overseen a prolonged period of shareholder value deterioration due to poor operational execution and ineffective capital allocation practices.
The presentation underscores Barington's critical engagement with Matthews since it began consulting with the company in December 2022. Despite Barington's intentions to collaborate and provide strategic recommendations, their engagement has reportedly been met with resistance, with minimal interaction permitted beyond quarterly updates. This lack of meaningful dialogue raised concerns about Matthews' commitment to improvement, particularly after Barington's proposal to replace the CEO led to Barington moving to nominate its own directors.
For years, Matthews has struggled with underperformance, attributed largely to inadequate capital allocation strategies that have not yielded the desired results. Barington's analysis suggests that the combined value of Matthews’ businesses could reach between $44 and $57 per share, excluding additional potential from its Energy Storage segment. This reality stands in stark contrast to the current shareholder sentiment, which reflects dissatisfaction with past promises that have not manifested into tangible outcomes.
Barington takes particular aim at CEO Joseph Bartolacci, who has been at the helm since 2006. According to Barington, his promises for future value creation have failed to materialize, leaving investors disillusioned. The existing board, noted for its long tenures and apparent disengagement from shareholder interests, is called into question as Barington poses that their lack of accountability has exacerbated Matthews’ operational missteps.
Highlighting the importance of governance, Barington is urging shareholders to reevaluate the current board's abilities and consider their proposed nominees. Barington has introduced three seasoned executives—Ana Amicarella, Chan Galbato, and James Mitarotonda—as candidates they believe would bring necessary expertise to the board. These nominees come with proven track records in industries vital to Matthews’ success, promising a renewed focus on shareholder interests and long-term strategic goals.
Barington’s overarching strategy for Matthews includes several immediate recommendations: a revamp of the board to enhance governance practices, a prompt search for a new CEO, prioritizing businesses that would contribute to lasting shareholder value, and a structured plan to reduce operating expenses while addressing debt levels. These steps are viewed as essential to reversing the trends that have led to years of disappointing performance.
In closing, Barington strongly encourages Matthews' shareholders to vote using their GOLD proxy card, emphasizing that a shift in leadership is imperative to halt the ongoing decline in shareholder value. Their position is clear: now is the time for action, and the voice of shareholders must be heard to secure a brighter future for Matthews International Corporation. Shareholders are invited to review the detailed presentation accessible at Barington’s dedicated URL to gain insight and make informed voting decisions at the upcoming annual meeting.
As Barington continues to champion this cause, the implications of their efforts could signal a significant shift for Matthews International, potentially unlocking value that has long been dormant under the current governance structure. The approach taken by Barington illustrates the critical role that shareholders can play in advocating for corporate governance reforms and the restoration of investor confidence.
The presentation underscores Barington's critical engagement with Matthews since it began consulting with the company in December 2022. Despite Barington's intentions to collaborate and provide strategic recommendations, their engagement has reportedly been met with resistance, with minimal interaction permitted beyond quarterly updates. This lack of meaningful dialogue raised concerns about Matthews' commitment to improvement, particularly after Barington's proposal to replace the CEO led to Barington moving to nominate its own directors.
For years, Matthews has struggled with underperformance, attributed largely to inadequate capital allocation strategies that have not yielded the desired results. Barington's analysis suggests that the combined value of Matthews’ businesses could reach between $44 and $57 per share, excluding additional potential from its Energy Storage segment. This reality stands in stark contrast to the current shareholder sentiment, which reflects dissatisfaction with past promises that have not manifested into tangible outcomes.
Barington takes particular aim at CEO Joseph Bartolacci, who has been at the helm since 2006. According to Barington, his promises for future value creation have failed to materialize, leaving investors disillusioned. The existing board, noted for its long tenures and apparent disengagement from shareholder interests, is called into question as Barington poses that their lack of accountability has exacerbated Matthews’ operational missteps.
Highlighting the importance of governance, Barington is urging shareholders to reevaluate the current board's abilities and consider their proposed nominees. Barington has introduced three seasoned executives—Ana Amicarella, Chan Galbato, and James Mitarotonda—as candidates they believe would bring necessary expertise to the board. These nominees come with proven track records in industries vital to Matthews’ success, promising a renewed focus on shareholder interests and long-term strategic goals.
Barington’s overarching strategy for Matthews includes several immediate recommendations: a revamp of the board to enhance governance practices, a prompt search for a new CEO, prioritizing businesses that would contribute to lasting shareholder value, and a structured plan to reduce operating expenses while addressing debt levels. These steps are viewed as essential to reversing the trends that have led to years of disappointing performance.
In closing, Barington strongly encourages Matthews' shareholders to vote using their GOLD proxy card, emphasizing that a shift in leadership is imperative to halt the ongoing decline in shareholder value. Their position is clear: now is the time for action, and the voice of shareholders must be heard to secure a brighter future for Matthews International Corporation. Shareholders are invited to review the detailed presentation accessible at Barington’s dedicated URL to gain insight and make informed voting decisions at the upcoming annual meeting.
As Barington continues to champion this cause, the implications of their efforts could signal a significant shift for Matthews International, potentially unlocking value that has long been dormant under the current governance structure. The approach taken by Barington illustrates the critical role that shareholders can play in advocating for corporate governance reforms and the restoration of investor confidence.
Topics Financial Services & Investing）
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