Matthews International To Buy Schawk

(RTTNews) - Matthews International Corp. (MATW) said Monday that its has agreed to buy Schawk, Inc. (SGK), a brand development, activation and brand deployment company.

Under the terms of the deal, Schawk stockholders will receive $11.80 cash and 0.20582 shares of Matthews' common stock for each Schawk share held. Based on the closing price of Matthews' stock on March 14, the deal represents an implied price of $20.00 for each Schawk share and a total enterprise value of about $577 million.

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

Members of the Schawk family and various Schawk family trusts, who collectively own about 61% of the common stock of Schawk, have agreed to vote in favor of the merger.

The deal is expected to close in the quarter ending September 30, 2014.

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