On May 9, Sarine Technologies completed its previously announced acquisition of the Gem Certification & Assurance Lab (GCAL).

What is currently Sarine North America will merge with GCAL to form a new entity, GCAL USA, which will be controlled by the Sarine Group.

The Israeli equipment manufacturer owns 70% of the New York City–based GCAL USA, for which it paid $5.65 million, it said.

GCAL’s principals will continue to run the lab for at least three years, and after that, Sarine will have the option to acquire the entire lab, it said in a filing, which also said the merger will boost the Sarine Group’s profitability by some 7% on a pro forma basis.

In a statement, GCAL USA president Angelo Palimieri said that by using Sarine’s artificial intelligence–based grading, GCAL will be able to expand its services worldwide. His father, Don Palmieri, who founded the lab in 2001, called the sale an “emotional moment,” but said the merger means he can bring the lab’s “stringent quality guarantee” to the market on an expansive scale.

(Photo courtesy of Sarine Technologies)

 

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