(RTTNews) - Matthews International Corp. (MATW) Friday announced that it has signed a letter of intent to sell the remaining businesses within its SGK Brand Solutions segment, primarily comprising its European roto-gravure packaging and surfaces operations. The deal is valued at $50 million, mostly in cash, which will be used to reduce debt.
This follows Matthews' January 8 agreement to sell its interest in SGK for $350 million. With this latest transaction, total upfront proceeds from the SGK divestiture will reach $400 million, implying a segment valuation exceeding $600 million.
The sale is expected to close in the third quarter, pending a definitive agreement, financing, and regulatory approvals.
MATW is currently trading pre-market at $24.90 down 0.28 percent or $0.07 on the Nasdaq.
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