26 February 2012

Warren Buffett Buys US Precious Metals Business from Cookson Group

Apparently Berkshire's Richline Group didn't get the memo that Warren doesn't like silver or gold.

Richline is involved in the fabrication of precious metals into jewelry. The acquisition of US Precious Metals will bring them into the mill and findings portion of the precious metals industry, as well as acquiring European and Asian distribution channels.

A small deal for Berkshire, but it is a bit of fun.

I wonder if Warren will have an introductory note to Richline's next company report, "May Is Gold Month." lol.

Cookson Group Sells US Precious Metals Business To Richline Group
2/23/2012 4:00 AM ET

(RTTNews) - Cookson Group plc reached an agreement to sell its US Precious Metals business, an operation that forms part of its Precious Metals division, to Richline Group Inc., an unit of Berkshire Hathaway Inc.

Earlier, Cookson announced that, following the US Precious Metals business becoming loss-making, it had begun a strategic review and significant downsizing of the business. Subsequently, Richline expressed an interest in buying this business, and on 22 February 2012, Cookson and Richline inked a deal for Richline to acquire the business, subject to normal legal and regulatory closing provisions which may be completed in the 2012 second quarter.

The net cash consideration is subject to closing balance sheet adjustments but is expected to be sufficient for Cookson's exit from the business to be cash neutral, including taking into account the restructuring and other costs incurred in preparing the business for sale. The gross assets of the businesses being acquired by Richline are nearly $69.8m or 44.4 million pounds, while the net assets are about $60.2 milion.

Richline Acquires U.S. Precious Metals Business
By Rob Bates
February 23, 2012.

Richline Group will acquire the U.S. precious metals division of the Cookson Material Products Group in the second quarter of 2012.

According to a Cookson statement, the gross assets of the businesses being acquired by Richline are approximately $69.8 million, and net assets roughly $60.2 million. It said its U.S. precious metals business had become “loss-making.”

Businesses in the United Kingdom, France, Hong Kong, Japan, and China that will distribute and sell Richline product are part of the acquisition, Richline said.

Richline, owned by Warren Buffett's Berkshire Hathaway, said this deal demonstrates its commitment to the mill and findings segments of the businesses...

A Richline spokesman declined comment on a Reuters report that suggested it is about to purchase Italian jeweler UnoAErre.