PITTSBURGH, PA–Matthews International announced the sale of its SGK Brand Solutions division to a newly formed entity created by SGS & Co affiliates. The deal, set to close mid year, includes $350 million in upfront consideration, comprising $250 million in cash, $50 million in preferred equity, and $50 million in retained trade receivables. Matthews will also receive a 40 percent stake in the new entity’s common equity.
The combined company will be 10,000 employees strong, serve more than 2,600 clients across four lines of business in more than 30 countries, and have annual sales of $1 billion.
Gary R. Kohl, current president of SGK, will lead the new entity as CEO, and Matthew T. Gresge, the current CEO of SGS, will become Executive Chairman of the Board.
Gresge said, “SGS & Co and SGK have highly complementary products and services, geographies and cultures. Through this combination, we will accelerate innovation and enhance a powerful portfolio of marketing services covering creative and strategy, packaging and print solutions, and merchandising services, all designed to drive brand value for our client partners and create a great place to work for our team. …Gary and I have been friends and colleagues for almost 40 years and feel incredibly fortunate to be part of uniting and leading these two great companies.”
SGS & CO and SGK are both long-time Flexographic Technical Association members with multiple locations (17) enrolled.
SGK’s affiliation with FTA stretches over 12 locations and dates back to 1970. Sites include Pittsburgh, Pa; East Butler, Pa; Marietta, Ga; Boston, MA; Battle Creek, MI; Minneapolis, MN; Cincinati, OH; and St Louis, Mo. International locations include Canada, Mexico, England and Malaysia.
Similarly, SGS & CO membership in FTA dates back to 1977. Multi-plant locations list out as: Marietta, Ga; Florence, KY; St Louis, Mo; Brooklyn Park, MN; Mississauga, ON, Canada.
