Matthews International Corporation signs Merger Agreement to Acquire Schawk, Inc.

Matthews International Corporation announced on the March 17, 2014 that it has signed an agreement to acquire Schawk, Inc.  (SGK). Matthews International Corporation is a designer, manufacturer and marketer of memorialization products and brand solutions. The memorialization products consist of bronze and granite memorials. While SGK is a leading global brand development, activation and deployment that drives brand performance. SGK had reported sales of $443 million for 2013 and it has about 3600 in over 20 countries around globe.

The merging of the two companies is to have save cost of about $35 million to $45 million annually. The transaction cost is payment to SGK stockholders receiving $11.80 in cash and 0.20582 shares of Matthews’s common stock for each SGK share held. The transaction deal is expected to close by September 30, 2014 subject to the approval by the SGK shareholders, receipt of regulatory approval and other close conditions. President/CEO of Matthews stated that SGK geographic and product positioning is uniquely complementary to Matthews. He said the alliance will create more opportunities for their clients and employees in all markets they serve. It is expected to build a stronger and competitive business in the global brand solution which is also high up growth in their revenue.