Why Matthews International Is Acquiring Brand Developer Schawk

Matthews International's corporate headquarters is expected to remain in Pittsburgh in the wake of Monday's announcement that it will acquire Schawk Inc., also known as SGK Inc., in a cash and stock deal worth $577 million.

"It positions us as a global leader" in the brand marketing industry worldwide, said Matthews International President and CEO Joseph C. Bartolacci during a conference call with analysts Monday morning.

Matthew's brand solutions business will be an $850 million annual business when the two companies brand operations are combined as SGK and led by SGK CEO David Schawk. Schawk, whose father Clarence started the business