Matthews to sell SGK unit, but Barington plows on with proxy fight

Matthews International

08/01/2025 21:24

By Svea Herbst-Bayliss
       NEW YORK, Jan 8 (Reuters) - Matthews International
 MATW.O  on Wednesday said it is selling one of its businesses,
but the move did not mollify an activist investor seeking to add
new directors to the casket maker's board.
    The share price of Pittsburgh-based Matthews, which also
makes products for cemeteries, funeral homes and crematories,
jumped 14.5% on Wednesday after the company announced plans to
sell its interest in SGK Brand Solutions for $350 million.
    New York-based hedge fund Barington Capital Group, which
long wanted Matthews to consider divesting the segment, said it
has urged the company to simplify its portfolio since 2022 and
is pleased with the move.
    But Barington stuck by its plan to try and refresh the board
with three of its own director nominees and said the candidates,
including Barington founder James Mitarotonda, could help create
other situations like Wednesday's sale to boost the company's
share price.
    Matthews hinted at the sale on its last earnings call when
it said that JPMorgan Chase  JPM.N  was helping the company
explore strategic alternatives. That news pushed the stock price
up more than 20%.
    At that time Matthews also highlighted achievements of Chief
Executive Joseph Bartolacci, including growing revenues to $1.8
billion from $700 million in 2006 and diversifying its holdings
through acquisitions.
    But Barington has said Bartolacci lacks credibility and
experience to run the conglomerate with its technology-focused
businesses and wants to replace the long-serving CEO.
    The hedge fund also wants the company to follow through with
its review for its Warehouse Automation and Product
Identification businesses and find a partner for its Energy
Storage (dry cell lithium-ion battery) manufacturing business.
    In nominating three director candidates, Barington argued
the board and management need better oversight to help push up
the share price. 
    Matthews shares closed at $31.03 on Wednesday, down 12% over
the last 52 weeks but up 12% since the start of 2025.
    

 (Reporting by Svea Herbst-Bayliss; Editing by Leslie Adler)
 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))