Sarine Technologies Ltd has announced the signing of a non-binding Memorandum of Understanding (MOU) to purchase a majority share of the Gem Certification & Assurance Lab (GCAL).
The MOU demonstrates Sarine’s serious intent to purchase a majority share of the highly-respected gemmological laboratory, subject to the usual due diligence reviews, and to reaching and executing a definitive agreement.
Sarine Technologies Ltd is a worldwide leader in the development, manufacturing, marketing and sale of precision technology products for the evaluation, planning, processing, measurement, grading and trading of diamonds.
The Gem Certification & Assurances lab offers services for the grading and certification of natural and lab-grown diamonds, coloured diamonds, coloured gemstones, pearls and precious metals.
GCAL was founded in 2001 by Mr Don Palmieri, a veteran of the diamond industry with over 50 years of experience, and his wife, Pamela.
The laboratory currently operates as a family-owned business on Diamond Way in New York City, on the corner of Fifth Avenue and 47th Street – with son Angelo Palmieri in the role of chief operations officer.
GCAL is the only diamond and gemstone ISO 17025 Accredited Forensic Laboratory in the world, and, in addition to the lab’s many unique features, the GCAL Diamond Certificate is the only diamond report backed by the unprecedented and industry exclusive Zero Tolerance 4C’s Consumer Guarantee.
It is anticipated that, following Sarine’ acquisition, GCAL’s principal officers will continue to run GCAL at an operational level, and the lab will continue to provide the same products and services.
Sarine CEO, David Block said: “We are thrilled by this opportunity to join forces with and acquire a major position in GCAL.
“I am confident that GCAL, leveraging Sarine’s technologies, will now be able to increase its market presence, to the benefit of the industry in general and to US consumers, in particular, without degrading from their industry-unique principles of guaranteed quality and consistency.
“No less importantly, Sarine will gain access to the Palmieri’s decades-long experience in managing a gem lab with the highest standards possible, and will gain a recognised and respected channel through which to offer the expansive key US retail industry its grading technologies, to the benefit of retailers and consumers alike.”
To guarantee its impeccable record of consistent quality work, GCAL has always operated out of a single location in New York.
By implementing Sarine’s unique AI-derived cloud-based automated e-Grading – along with Sarine’s diamond traceability Journey report – GCAL will be able to develop its services globally, while significantly expanding its services to US retailers and wholesalers without compromising its stringent levels of quality and consistency.
Sarine and GCAL will cooperate exclusively on serving customers in North America, as well as on offering the industry B2B reports for generic non-branded diamonds.
Outside of the US, Sarine will continue offering its services independently to its high-end branded luxury customers, and will continue to seek mutually beneficial cooperative arrangements in additional geographical locations.
GCAL president, Don Palmieri said: “We believe in doing things the right way, not the easy way.
“That’s why we don’t cut corners.
“Our aim is to provide accurate and consistent gemmological services with uncompromising integrity and unparalleled customer care.
“With only one location in the USA, we have always had complete control of maintaining high standards, training and consistency.
“Sarine’s introduction of its AI-derived and cloud-based e-Grading has, for the first time ever, provided us with the means to resolve our conundrum of how to expand our business both locally and overseas beyond our immediate control, without compromising on our principles.”
Angelo Palmieri added: “We believe experts should stand behind their work, and that’s why we issue Grading Certificates, not just grading reports.
“Our certificates come with a money-backed guarantee so you can feel good knowing you got exactly what you paid for.
“Sarine’s technologies will allow us to continue to abide by this key code of ethics, while still expanding our services to meet the growing demand by consumers seeking confidence that their acquired products and services meet all norms of quality and sustainability.”
Both parties have stipulated that the terms of the deal will remain confidential, pending its closing.
Sarine wishes to clarify that the deal will not fall under the definition of a ‘major transaction’, as per Chapter 10 of the Singapore Exchange Listing Manual.