Pittsburgh-based Matthews International Corp. (MATW) closed its divestiture of its SGK business to a joint venture with competitor SGS&Co. for $250 million cash, $50 million in trade receivables, $50 million of preferred equity, and a 40% common equity interest in the venture. We expect MATW to use most of the net cash proceeds to repay debt but estimate S&P Global Ratings-adjusted debt to EBITDA will be essentially unchanged at the high end of the 4x-5x range for 2025 because of the approximately $60 million decrease in EBITDA related to the divestiture, weak operating results, and a moderate increase in share repurchases. We view the remaining memorialization and industrial businesses as materially less diversified and more volatile, especially given
