On May 1, 2025, Matthews International Corporation announced the successful closing of the sale of its SGK Brand Solutions business to a newly formed entity, Propelis Group, created by affiliates of SGS & Co. This transaction combines SGK and SGS into a new company positioned as a leading global provider of brand solutions.
Under the terms of the agreement, Matthews received $350 million in upfront consideration, comprising $250 million in cash, $50 million of preferred equity in Propelis, and the retention of approximately $50 million in trade receivables. Matthews also retains a 40% common equity interest in the new entity.
The cash proceeds from the sale will be used to significantly reduce Matthews’ outstanding debt, strengthening the company’s balance sheet and providing financial flexibility for future strategic initiatives. Propelis Group is projected to realize over $50 million in annual cost synergies, further enhancing the value of Matthews' ongoing ownership stake.
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