Cookson Rises After Buffett’s Berkshire Buys Metals Unit
Cookson Group Plc (CKSN) advanced to the highest in more than seven months in London after Richline Group, owned by Warren Buffett’s Berkshire Hathaway Inc., agreed to buy its unprofitable U.S. precious metals business.
Cookson climbed 4.7 percent to 670 pence by the close, the highest since July 7, 2011. The sale is expected to be completed in the second quarter and while a price wasn’t given, the exit is expected to be “cash neutral” for the company including the costs of the deal, London-based Cookson said in a statement.
The company said Nov. 10 it was reviewing the unit, which supplies fabricated gold, silver and platinum to jewelers, after a loss. The operation had sales of $232 million last year.
Richline is a U.S. jewelry maker wholly owned by Berkshire. It was formed after Omaha, Nebraska-based Berkshire bought producers Bel-Oro International Inc. and Aurafin LLC in 2007.
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