Matthews International Sells European Businesses to Streamline Operations and Reduce Debt

Matthews International Streamlines Operations with Strategic Sale of European Businesses

Matthews International Corporation has successfully completed the sale of its European roto-gravure packaging and tooling businesses for a total consideration of $41 million. The transaction, which includes $22 million in cash, $12 million in assumed debt and pension liabilities, and $7 million in seller financing, represents a strategic move aimed at refining the company’s operational focus. CEO Joseph Bartolacci underscores that this sale is a pivotal moment in Matthews’ journey towards a more streamlined business structure, emphasizing the company’s commitment to unlocking value and addressing its debt burden.

The financial details reveal that Matthews receives $18 million in cash upfront, with an additional $4 million expected within the next six months. This influx of capital is earmarked for debt reduction, aligning with the company's ongoing strategy to improve its financial health. The roto-gravure businesses had recently shown only break-even adjusted EBITDA over the past two fiscal years, with annual sales hovering around $100 million. By divesting these underperforming assets, Matthews seeks to enhance its operational efficiency and redirect resources toward more profitable segments.

Matthews International, operating primarily through its Industrial Technologies and Memorialization segments, continues to focus on innovation and strategic expansion. The Industrial Technologies segment has transformed from a traditional marking business to a global leader in precision technologies, while the Memorialization segment serves the critical needs of cemeteries and funeral homes. With a workforce of over 5,400 employees across 19 countries, Matthews is dedicated to providing high-quality products and services tailored to meet evolving market demands.

In addition to its core operations, Matthews International holds a significant stake in Propelis, an integrated brand solutions business born from the merger of SGK and SGS & Co. This position allows Matthews to offer comprehensive solutions in brand creative and packaging, further solidifying its presence in the industry. The company’s recent sale reflects a broader strategy to enhance operational focus and foster long-term growth, as it continues to adapt to the dynamic landscape of the packaging and memorialization sectors.