#United States #New York #Matthews International #Barington Capital #Ana Amicarella

Barington Capital Group's Strategic Move to Transform Matthews International

On December 19, 2024, Barington Capital Group, L.P., recognized as a value-oriented activist investment firm, announced its strategic initiative to reshape the leadership of Matthews International Corporation. Barington, which owns approximately 2% of Matthews' outstanding common stock, has raised concerns regarding the company's performance over numerous years, citing significant underperformance in stock pricing and subpar capital allocation.

The Nomination of New Directors

Barington has filed a preliminary proxy statement with the U.S. Securities and Exchange Commission, proposing the nominations of three highly qualified candidates—Ana B. Amicarella, Chan W. Galbato, and James Mitarotonda—to join Matthews' Board of Directors in the upcoming 2025 Annual Meeting. According to James Mitarotonda, CEO of Barington, the objective is not only to enhance Matthews’ long-term value but also to address systemic issues associated with the current board and management practices.

The activation of this proxy campaign comes after Barington’s prolonged efforts to collaborate with Matthews' existing management, which have reportedly yielded no significant progress. Mitarotonda expresses concerns regarding CEO Joseph Bartolacci’s leadership during his 18-year tenure, highlighting that, under his guidance, the company has consistently lagged behind its peer group and broader market indicators, including the S&P 500 and Russell 2000 indices.

Candidates with Proven Track Records

The nominees are not just names on a list; they bring robust experience and proven capabilities. Ana B. Amicarella stands out as a seasoned leader with notable roles such as CEO of EthosEnergy and board member of several companies, underscoring her aptitude for driving innovation and performance. Her extensive background in the energy sector could be a vital asset for Matthews.

Chan W. Galbato is another integral nomination. Currently the CEO of Cerberus Operations and Advisory Company, he possesses vast experience in operational and strategic roles, having served on numerous boards, including his time as Chairman of Avon Products. His wealth of knowledge aligns perfectly with the needs of Matthews, aiming to spur both growth and efficiency.

Lastly, James Mitarotonda, already actively involved with Barington and possessing a rich background in managing investor relations and corporate governance, is positioned to offer unique insights into the necessary changes at Matthews. His record speaks to his investment expertise and his understanding of the complex dynamics present in multi-business units.

Call for Accountability and Change

Barington Capital's mission is clear: to enhance shareholder value by addressing inefficiencies within Matthews. By advocating for a new, credible leadership team and a reformation of the board, the firm aims to ensure that management is held accountable for its actions, fostering an environment that prioritizes fiscal responsibility and strategic growth.

The push for change is not merely a reaction to prior performance—it represents a call to leverage Matthews’ inherent value potential which, Barington believes, remains untapped. The proposed nominees are viewed as integral to constructing an aggressive yet rational approach towards operational and strategic reform at Matthews, fundamentally altering its trajectory.

A New Era for Matthews?

As the annual meeting approaches, stakeholders are urged to consider the implications of these nominations seriously. Barington Capital emphasizes that change is imperative for Matthews to regain its status as a leader in its field. By implementing fresh perspectives and restructured governance, the objective is to unveil the latent potential within Matthews, ultimately guiding it toward sustainable success.

Overall, this move reflects the growing trend of activist investors seeking to directly influence corporate governance to spur performance. The upcoming meeting promises to be a critical juncture for Matthews International as it grapples with its future direction.

For further details on Barington's proposals and for shareholders to follow the developments, the campaign has set up an online platform at Barington Matthews Campaign.

About Barington Capital Group, L.P.

Founded in January 2000, Barington Capital Group, L.P. is recognized for its activist approach, focusing on undervalued companies and fostering operational improvements to unlock shareholder value. The firm utilizes its extensive experience to devise and execute changes that yield long-term benefits for investors.