Matthews International Responds to ISS with Strong Dissent
Matthews International Strongly Contradicts ISS Report
Matthews International Corporation (NASDAQ: MATW) is taking a firm stance following the release of a recent report by Institutional Shareholder Services (ISS). The company expressed its disagreement with ISS’s recommendations, particularly those in favor of Barington’s positions, which, according to Matthews, lack proper analysis of their own proposals and nominees.
Concerns Over Barington’s Nominees
The leadership at Matthews has raised significant concerns over the qualifications of Barington's suggested nominees for the board. They argue that these candidates demonstrate a troubling lack of relevant industry knowledge and skills necessary to guide the company effectively. Matthews has articulated that the so-called independence attributed to Barington's nominees is overshadowed by their lack of understanding of the business and previous records of poor oversight.
Avoiding Potential Conflicts
James Mitarotonda, who has served as a consultant, reportedly added little value during his engagement. Matthews points out that his suggestions frequently mirrored existing strategies the company was already pursuing, raising doubts about his familiarity with their operations. Additionally, interviews with other Barington nominees illustrated a disconnect with Matthews's business and challenges.
Current Board Achievements
In contrast, Matthews International takes pride in numerous strategic milestones achieved under its existing board. For instance, their Memorialization segment has developed into a market leader, successfully generating cash and returning value to shareholders. This evolution has facilitated significant investment in their Industrial Technologies segment, notably with their promising Dry Battery Electrode (DBE) technology.
Growth in Electric Vehicle Market
With the recent arbitration victory against Tesla, Matthews plans to revitalize its marketing efforts for DBE solutions, enhancing partnerships with global manufacturers in the electric vehicle sector. The company anticipates that this win will not only improve operational capacities but also positively influence market perceptions moving forward.
Strategic Transactions and Value Creation
In line with its strategic vision, Matthews announced a substantial disposition involving its SGK business segment, emphasizing that this decision stemmed from evaluations initiated long before Barington became a shareholder. The terms of this transaction will result in considerable upfront capital, setting the stage for future collaborative synergies.
Engaging J.P. Morgan for Alternatives
The board is diligently exploring various strategic alternatives for all segments. Engaging with J.P. Morgan, Matthews is poised to unveil initiatives in the upcoming fiscal year aimed at amplifying shareholder value. The company believes in a healthy dialogue with its investors, keeping them well-informed and involved.
Boardroom Refreshment Initiatives
Since 2020, Matthews has successfully brought in three new independent directors and intends to continue refreshing its board structure, aiming for a balance of experience and innovative thinking. The board signals a commitment to evolve by announcing that certain members will step down to bring in fresh perspectives.
GAMCO Asset Management's Support
A positive signal came from GAMCO Asset Management, one of Matthews’ top shareholders, which recently affirmed support for Matthews' director nominees. Through careful evaluation, they concluded that Matthews’ slate is best equipped to drive company growth and value for shareholders.
Open Communication With Stakeholders
The leadership at Matthews emphasizes the importance of shareholder engagement, expressing gratitude for the input received. They remain steadfast in their commitment to act in the best interests of all stakeholders, reinforcing positive relationships along the way.
Voting Important for Matthews’ Future
Matthews urges shareholders to consider their votes carefully, advocating for support of their nominated directors on the WHITE proxy card while suggesting a WITHHOLD on Barington’s candidates. The active participation of shareholders is vital to shaping the company’s direction.
About Matthews International
Matthews International Corporation excels as a global provider of products and services across diverse sectors. With three main segments focusing on memorialization, industrial technologies, and brand solutions, they are dedicated to delivering high-quality products. The company prides itself on its talented workforce of over 11,000 employees stationed worldwide.
Frequently Asked Questions
What is the primary focus of Matthews International Corporation?
Matthews focuses on providing memorialization products, industrial technologies, and brand solutions globally, emphasizing quality and service.
What does Matthews aim to achieve with the SGK transaction?
The SGK transaction is expected to enhance capital resources and drive future synergy-driven value creation beneficial to all shareholders.
How does Matthews plan to engage with its shareholders?
Matthews encourages ongoing communication, valuing feedback, and maintaining transparency with shareholders regarding company progress and strategies.
Who supports Matthews’ proposals during board elections?
GAMCO Asset Management has expressed support for Matthews’ proposed nominees, underscoring confidence in the current board’s direction.
What recent victory has influenced Matthews' market plans?
A recent arbitration win against Tesla has renewed Matthews’ commitment to advancing its DBE technology in the electric vehicle market.
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