Matthews International (MATW, Financial) has announced significant progress towards the completion of its sale of SGK Brand Solutions. After receiving final clearance from international antitrust and competition authorities, the company is now poised to finalize the transaction before the current fiscal quarter concludes, contingent on the fulfillment of remaining customary conditions.
The transaction involves the merger of SGK Brand Solutions with SGS & Co, creating a newly formed entity. This move follows the earlier termination of the Hart-Scott-Rodino waiting period in February 2025, signaling regulatory approval for the merger on U.S. soil.
Matthews plans to strategically allocate the proceeds from the sale, prioritizing debt reduction with the infusion of cash. Additionally, the company also plans to engage in stock repurchases, benefiting from the prevailing market value of its common stock.
This deal is expected to unlock considerable opportunities through the synergy of SGK and SGS, enhancing operational efficiencies and market reach. The anticipated closure marks a pivotal moment for Matthews International as it pursues a streamlined focus on its core operations and financial goals.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Matthews International Corp (MATW, Financial) is $41.00 with a high estimate of $42.00 and a low estimate of $40.00. The average target implies an upside of 93.72% from the current price of $21.17. More detailed estimate data can be found on the Matthews International Corp (MATW) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Matthews International Corp's (MATW, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Matthews International Corp (MATW, Financial) in one year is $30.81, suggesting a upside of 45.57% from the current price of $21.165. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Matthews International Corp (MATW) Summary page.
