09:06 AM EST, 01/08/2025 (MT Newswires) -- Matthews International ( MATW ) said Wednesday that it has agreed to sell its stake in SGK Brand Solutions to a newly formed entity created by affiliates of SGS for $350 million in cash, equity, and receivables.

Matthews said it will receive $250 million cash at closing, plus $50 million in preferred equity in a new entity merging SGK Brand Solutions and SGS as well as the retention of $50 million in trade receivables.

Matthews said it will receive a 40% stake in the common equity of the new entity, which will be valued at $900 million.

Matthews said it will retain the German roto-gravure packaging business as well as other related investments currently held by SGK Brand Solutions.

Matthews said cash proceeds from the deal, which is slated to be completed in mid-2025, as well as future proceeds, will be used to reduce debt.