Activist hedge fund Barington Capital Group has opened a fresh proxy battle with Matthews International, nominating three directors to the board in a renewed push for governance and portfolio changes at the US manufacturer, according to a report by Reuters.
The move comes less than a year after Barington lost its first contest at the company’s February 2025 AGM — making the decision to return so quickly highly unusual, according to advisers familiar with the process.
Barington, which owns roughly 3.2% of Matthews, has put forward founder James Mitarotonda, former Cerberus Operations executive Chan Galbato, and experienced board member Sheila Hooda as nominees. Hooda replaces Ana Amicarella, who featured on the fund’s previous slate.
The activist has pressed Matthews – whose operations span technology services and legacy burial products – to overhaul capital allocation, streamline its portfolio and address long-tenured leadership. While the $754m-market-cap company has rejected Barington’s request for board representation, it has carried out two divestitures favoured by the fund and pledged governance reforms, including annual director elections and the removal of supermajority voting provisions for mergers starting in 2026.
Despite securing support from major proxy advisers earlier this year, Barington failed to convince key shareholders including GAMCO and several large index funds, which backed management’s slate.
Matthews has said it continues to simplify its business mix, cut costs and pursue a strategic review. Both sides declined to comment on the new nominations.
