Activist Investor Nominations at Matthews International

By Svea Herbst-Bayliss

NEW YORK (Reuters) – Activist investor Barington Capital Management has nominated its founder, James Mitarotonda, along with Ana Amicarella and Chan Galbato, as director candidates at casket maker Matthews International (NASDAQ:MATW).

Ana Amicarella is currently on the boards of Forward Air (NASDAQ:FWRD) and Warrior Met Coal (NYSE:HCC), while Chan Galbato, an investment industry veteran, runs Cerberus Operations and Advisory Company and was recently on the board of Albertsons (NYSE:ACI).

The Matthews board and management assert their commitment to act in the best interests of all shareholders. Barington holds about 2% of Matthews' outstanding stock, advocating for the replacement of CEO Joseph Bartolacci, who has led the company for nearly two decades.

Additionally, Barington seeks the divestiture of Matthews’ SGK Brand Solutions segment, a review of its Warehouse Automation and Product Identification businesses, and the search for a partner for its Energy Storage (dry cell lithium-ion battery) manufacturing division.

Three Matthews directors on the 11-member board are up for reelection at the company’s annual meeting early next year. Barington proposes that all directors face annual elections and intends to submit a proposal to declassify the board.

Last week, Matthews expressed a strong business outlook and announced hiring JPMorgan Chase (NYSE:JPM) to explore strategic options, resulting in a more than 20% rise in its stock price. The company has seen a near 25% decline in its shares since January, closing at $27.77 on Wednesday.