Activist investor Barington Capital Management has nominated its founder, James Mitarotonda, along with two other executives, as Director candidates at coffin manufacturer Matthews International, according to a report by Reuters.
Additional nominations include Ana Amicarella, who serves on the boards of Forward Air and Warrior Met Coal, and Chan Galbato, a veteran of the investment industry who leads Cerberus Operations and Advisory Company, and recently served on the board of grocer Albertsons.
In response, Matthews stated that its board and management are committed to acting in the best interests of all shareholders.
Barington currently holds approximately 2% of Matthews’ outstanding shares, and is pushing for the replacement of Matthews’ long-serving CEO, Joseph Bartolacci, who has been at the helm for nearly 20 years.
Barington is also advocating for Matthews to explore the sale of its SGK Brand Solutions unit, complete its review of its Warehouse Automation and Product Identification divisions, and seek a partner for its Energy Storage (lithium-ion battery) manufacturing business.
At Matthews’ upcoming annual meeting, three of its 11 directors are up for reelection, and Barington has expressed its desire for all directors to stand for annual elections. To that end, the investor plans to submit a proposal to declassify the board.
Matthews, however, has maintained a positive outlook, citing its strong business prospects.
The company recently hired JPMorgan Chase to explore strategic alternatives, a move that boosted its stock price by over 20%.
Despite this, Matthews’ shares have dropped nearly 25% since January, closing at $27.77 on Wednesday. Matthews has emphasised that its focus will remain on actions that create long-term value for shareholders.
