Boston, MA 03/17/2014 (wallstreetpr) – Clarence W. Schawk and his company Schawk, Inc. (NYSE:SGK), have both come a long way since those “humble beginnings” in 1953. The company provides branding solutions to clients in a range of different industries. The company is spread across 155 locations in 25 countries spanning the Americas, Europe, Asia and Australia. After about 60 years of being in business, Schawk has been acquired by Pittsburgh-based Matthews International Corp (NASDAQ:MATW).
2013 Quarterly and Full Year Results
Schawk, Inc. (NYSE:SGK) reported 4Q2013 income of $5.8 million compared to a loss of $18.1 million in 4Q2012. Income for FY2013 was $13.2 million compared to a loss of $23.6 million for FY2012.
Consolidated net revenues in FY2013 were $442.6 million compared to $441.3 million in FY2012. The lion’s share of client revenue comprised of consumer packaged goods which accounted for $384.1 million for FY2013, which was 86.8% of total net revenues. Cost of services (excluding depreciation and amortization) for FY2013 amounted to $270.6 million in FY2013 compared to $279.9 million in 2012.
Good Deal For Schawk Shareholders
The deal will cost Matthews a total of about $577 million in cash and stock. Since the deal announced on March 17 offers Schawk shareholders $11.80 in cash and 0.20582 shares of Matthews’ common stock which had a closing share price of $39.84 on Friday, March 14, it means Matthews is willing to pay about $20.00 for each Schawk share.
That was a nearly 36% premium over Schawk’s closing price of $14.73 on March 14.
The deal will require regulatory approval and approval from Schawk, Inc. (NYSE:SGK) shareholders. Majority of the stock (about 61%) of Schawk is owned by members of the Schawk family and various Schawk family trusts who have already expressed their support for the deal.
The merged company is expected to generate about $850 million in annual revenues and will be headed by the current CEO of Schawk, Inc. (NYSE:SGK), David Schawk.
