Superior Galleries will be sold in October for $14 million in an all-stock deal to DGSE Companies., Inc., parent firm of Dallas Gold and Silver Exchange.
Currently, Superior Galleries is 57-percent owned by Stanford Financial Group of Houston. Stanford will become the single largest shareholder in the combined entities, which will continue to be called DGSE Companies.
Current Superior CEO is Silvano DiGenova. Larry Abbott is executive vice president and chief operating officer. Abbott said that current clients and consignors should notice no changes in day-to-day operations. The Beverly Hills office and staff will remain in place, as will the management team.
?The main objective is that the merged entity will have a very strong balance sheet, one of the strongest in the industry, which should be a comfort to consignors,? Abbott said.
The sale should bring annual sales to the $100 million threshhold, Abbott said. Superior by itself will show sales in the neighborhood of $50 million in its fiscal year closing June 30.
Also, it is hoped that the combined companies will be listed as a NASDAQ over-the-counter market small cap firm as DGSE presently is. Now Superior Galleries is a bulletin board stock. This would improve liquidity, Abbott said.
The transaction is subject to review and approval by the Securities and Exchange Commission.