Matthews International To Buy Schawk, Deal Valued At $577 Mln - Quick Facts

(RTTNews) - Matthews International Corp. (MATW) Monday said it has signed a definitive agreement to acquire Schawk, Inc. (SGK), a leading global brand development, activation and brand deployment company. The deal has a total enterprise value of about $577 million.

Under the terms of the transaction, SGK stockholders will receive $11.80 cash and 0.20582 shares of Matthews' common stock for each SGK share held.

Based on the closing price of Matthews' stock on March 14, the transaction represents an implied price of $20.00 for each SGK share. The exchange is intended to qualify as a tax-free reorganization on the share portion of the purchase price.

SGK reported sales of $443 million for 2013 and has approximately 3,600 employees in over 20 countries.

The combination is expected to achieve $35 million to $45 million in annual cost-savings synergies. It is expected to be accretive to adjusted earnings per share in the first full fiscal year after the closing of the transaction, excluding non-recurring transaction-related expenses and costs to achieve synergies.

The transaction is expected to close in the quarter ending September 30.

SGK said the agreement was approved by each company's board of directors and by a special committee of independent directors of SGK.