Matthews International Completes Sale of European Business Units
PITTSBURGH — Matthews International Corporation (NASDAQ GSM: MATW) is excited to announce the successful closing of its sales regarding its European roto-gravure packaging and tooling businesses. This strategic move is estimated to bring in total revenues of $41 million, comprising $22 million in cash, $12 million in assumed liabilities, and seller financing of $7 million. Initial cash proceeds of $18 million have already been received, with an additional $4 million expected within six months.
Strategic Business Transformation
Mr. Bartolacci, President and Chief Executive Officer of Matthews International, remarked on the significance of this transaction, stating, "This sale represents an essential step in refining our business structure, helping us to unlock more value and reduce debt simultaneously. The adjusted EBITDA from these sectors was roughly break-even for the past two years, each with sales in the vicinity of $100 million. All cash proceeds are set to be directed towards our ongoing efforts in debt reduction."
About Matthews International Corporation
Matthews International Corporation operates with great commitment through its two primary global sectors: Industrial Technologies and Memorialization. Its mission revolves around fostering operational efficiency and sustainable growth by continually innovating and pursuing strategic expansions. The Industrial Technologies segment has evolved from the company’s foundational marking business, establishing itself as a leading innovator dedicated to transforming industries by leveraging precision technologies and intelligent operational processes.
On the other end, their Memorialization division stands out as a premier provider of memorial products, encompassing caskets, memorials, and specialized cremation equipment tailored to support families through the transition from grief to remembrance. Moreover, Matthews has invested significantly in Propelis, a brand solution venture that emerged from the merger of SGK and SGS & Co. Propelis specializes in delivering comprehensive branding solutions, which include creative brand development, packaging design, print solutions, environmental branding, and content production. The company proudly employs over 5,400 professionals spread across 19 countries on four continents, dedicated to upholding the highest standards of product quality and customer service.
Growth and Future Opportunities
This recent sale aligns with Matthews International's commitment to strengthen its core operations. As the company focuses on enhancing its balance sheet and reducing debts, it seeks out opportunities that will allow it to pursue growth without compromising operational integrity. Moving forward, Matthews aims to leverage its innovative capacities to capitalize on emerging market trends, positioning itself advantageously within the industries it operates.
Company Contact Information
For further inquiries, interested parties can reach out to:
Daniel E. Stopar
Chief Financial Officer and Treasurer
(412) 442-8200
Frequently Asked Questions
What businesses did Matthews International sell?
Matthews International sold its European roto-gravure packaging and tooling businesses.
What is the estimated revenue from this sale?
The total consideration from the sale is estimated at $41 million, which includes cash and assumed liabilities.
How will the proceeds from the sale be used?
All cash proceeds from the sale will be immediately applied to debt reduction efforts.
What are the primary business sectors of Matthews International?
Matthews International operates primarily through Industrial Technologies and Memorialization sectors.
How many employees does Matthews International have?
The company has over 5,400 employees located in 19 countries across four continents.
