Matthews International Corporation closed the sale of its European roto‑gravure packaging and tooling businesses on January 7 2026 for a total consideration of $41 million. The transaction comprised $22 million in cash, $12 million of assumed debt and pension liabilities, and $7 million of seller financing. At closing the company received $18 million in cash, with the remaining $4 million due within six months.
The divestiture is part of Matthews’ broader strategy to streamline its operations and strengthen its balance sheet. All cash proceeds will be applied immediately to debt reduction, accelerating the company’s goal of a net leverage ratio of 3.0x or less. By shedding a segment that has been operating near break‑even, Matthews can reallocate capital to its core Industrial Technologies and Memorialization businesses, which are expected to drive future growth.
Financially, the European businesses generated roughly $100 million in sales per year and produced break‑even adjusted EBITDA for each of the past two fiscal years. The lack of significant profitability or growth potential in these units made them a natural target for divestiture, allowing Matthews to focus on higher‑margin, higher‑growth segments.
CEO Joseph C. Bartolacci said the sale is “another step toward a more streamlined business structure and our commitment to unlocking the value of our Company in addition to further debt reduction.” The comment underscores the company’s intent to concentrate on its most profitable and strategically aligned operations.
Investors have responded with mixed sentiment. While the debt‑reduction benefit is clear, the loss of a $100 million revenue stream has tempered enthusiasm. Similar divestitures, such as the sale of the Warehouse Automation business earlier in 2025, saw a mild negative reaction, reflecting caution over revenue erosion despite leverage improvement.
The transaction fits into Matthews’ ongoing strategic alternatives review, which also includes the sale of the Warehouse Automation business and the divestiture of Brand Solutions. The company’s long‑term leverage target of 2.5x, coupled with recent litigation outcomes with Tesla and a S&P downgrade citing high leverage, highlights the importance of these moves for restoring financial stability and positioning the company for future growth.
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