Two substantial buyers and sellers of scrap are joining
forces.
On June 26, DGSE Companies announced it had executed a
letter of intent to acquire Southern Bullion Trading. The transaction is
expected to close later this summer.
DGSE buys and sells jewelry and other metals through its Dallas
Gold and Silver Exchange, Charleston Gold and Diamond Exchange, Superior Gold
& Diamond Exchange operations, as well as on the Internet. Its acquisition,
Southern Billion Trading, also buys and sells jewelry and metals through 20
locations throughout the Southeast. SBT had unaudited revenues of approximately
$35 million and operating income of approximately $1.5 million in 2010, DGSE
said.
Under the terms of the letter of intent, DGSE will acquire
SBT for a maximum of 600,000 shares of restricted DGSE common stock, the exact
number of shares to be determined following an audit by DGSE. In connection
with this transaction, SBT’s majority owner NTR Metals will make an equity investment
in DGSE of $2 million dollars and will receive 400,000 DGSE restricted common
shares.
Follow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine
