WASHINGTON– Covington advised Matthews International Corporation, a global provider of memorialization products, industrial technologies, and brand solutions, on antitrust matters related to the sale of its interest in SGK Brand Solutions to a newly formed entity created by affiliates of SGS & Co, which will combine SGK and SGS. The transaction closed on May 1, 2025, and the new entity has an enterprise value of approximately $900 million.
Under the terms of the agreement, Matthews realized $350 million of total upfront consideration, including $250 million in cash at closing, $50 million of preferred equity in the new entity, and the retention of approximately $50 million in trade receivables under Matthews’ securitization program. In addition, Matthews received a 40% interest in the common equity of the new entity.
SGK is a brand and content production agency focused on brand creation, brand activation, and brand stewardship, providing global solutions to a variety of market verticals, including food and beverage, home and personal care, and lifestyle.
SGS is a global brand design agency that delivers end-to-end in strategy, graphic services, production, technology, and process optimization. The new entity is now operating as Propelis.
The Covington team included Derek Ludwin, Ryan Quillian, Johan Ysewyn, James Marshall, Anna Lubberger, Stacy Kobrick, Silvia Wu, Mathias Heller, Zachary Starks-Taylor, Mélanie Perez, and Leire Garagorri Eguidazu.
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