Quarterly report pursuant to Section 13 or 15(d)

Acquisitions

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Acquisitions
 6 Months Ended
Mar. 31, 2015
Acquisitions [Abstract]  
Acquisitions
Note 12.   Acquisitions

On July 29, 2014, the Company acquired Schawk, a leading global brand development, activation and brand deployment company headquartered in Des Plaines, Illinois.  Under the terms of the transaction, Schawk shareholders received $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 July 28, 2014, the transaction represented an implied price of $20.74 per share and a total enterprise value (which included net outstanding debt, net of cash acquired) of $616,686.  Schawk provides comprehensive brand development and brand deployment services to clients primarily in the consumer packaged goods, retail and life sciences markets.  Schawk creates and sells its clients' brands, produces brand assets and protects brand equities to help drive brand performance.  Schawk delivers its services through more than 155 locations in over 20 countries across North and South America, Europe, Asia and Australia.  The preliminary purchase price allocation related to the Schawk acquisition is not finalized as of March 31, 2015, and is based upon a preliminary valuation which is subject to change as the Company obtains additional information, including with respect to fixed assets, intangible assets, certain liabilities and related taxes.

The following information presents a summary of the consolidated results of Matthews combined with Schawk as if the acquisition had occurred on October 1, 2013:


   
Three Months Ended
    
Six Months Ended
  
   
March 31,
    
March 31,
  
   
2015
    
2014
    
2015
    
2014
  
                 
Sales
  
$
349,394
    
$
348,723
    
$
692,978
    
$
692,948
  
Income before income taxes
    
13,805
      
18,178
      
33,893
      
34,846
  
Net income
    
9,576
      
13,444
      
24,527
      
23,750
  
Earnings per share
  
 
$.29
    
 
$.41
    
 
$.74
    
 
$.72
  
                                 

The unaudited pro forma results for the three and six months ended March 31, 2014 have been prepared for comparative purposes only and include certain adjustments, such as interest expense on acquisition debt and acquisition related costs.  The pro forma information does not purport to be indicative of the results of operations which actually would have resulted had the acquisition occurred on the date indicated, or which may result in the future.