Envela Expands Electronics-Trade-In Capabilities with Acquisition

Rhea-AI Summary

Envela Corporation (ELA) announced the acquisition of CExchange LLC's assets, enhancing its electronics trade-in services. The company anticipates this move will yield cost reductions and efficiencies, while contributing to revenue and earnings growth for shareholders. This acquisition aligns with Envela's strategic focus on expanding its presence in the recommerce sector. CExchange specializes in trade-in and recycling services, catering to major retailers, thus positioning Envela for further success in sustainable electronics management.

Positive

• Acquisition of CExchange LLC enhances electronics trade-in services.
• Expected cost reductions and efficiencies improve profitability.
• Strategic move to expand in the environmentally friendly recommerce sector.

Negative

• None.

DALLAS, TX / ACCESSWIRE / June 10, 2021 / Envela Corporation (NYSE American:ELA) ("Envela" or the "Company") announced today that its subsidiary CEX Holdings, LLC ("CEX") has purchased the assets of CExchange LLC, a leader in electronics-trade-in services for retailers.

Envela believes this acquisition will bring promising synergies of cost reductions and efficiencies, and contribute to revenue and earnings accretion to shareholders. It also advances the Company's ongoing strategy to expand its presence in the environmentally friendly recommerce sector.

About CExchange

CExchange provides electronics trade-in and recycling service for retailers. It offers custom solutions to meet the needs of diverse clients, including Fortune 500 companies, both online and offline. CExchange provides services that help retailers maximize the value for returned and used electronics.

About Envela

Envela and its subsidiaries engage in diverse business activities within the recommerce sector. These include recommercializing luxury hard assets, consumer electronics and IT equipment; and end-of-life recycling solutions. Envela assesses its inventory of recommerce purchases for their potential to be refurbished and resold as whole goods, or to be recycled for component parts or precious-metal value. Envela also offers comprehensive recycling solutions for a variety of other companies seeking responsibly to dispose of end-of-life products. Envela operates primarily via two recommerce business segments. Through DGSE, LLC the Company recommercializes luxury hard assets via Dallas Gold and Silver Exchange, Charleston Gold & Diamond Exchange, and Bullion Express brands (collectively, "DGSE"). Through ECHG, LLC, the Company operates Echo Environmental Holdings, ITAD USA Holdings, and Teladvance (collectively, "ECHG"), which recommercialize primarily consumer electronics and IT equipment, and provide end-of-life recycling services for various companies across many industries. Envela conducts its recommerce operations at retail and wholesale levels, through distributors, resellers, dedicated stores and online. The Company also owns and operates other businesses and brands engaged in a variety of activities, as identified herein. Envela is a Nevada corporation, headquartered in Dallas, Texas.

Additional information about Envela is available at its investor-relations site,Envela.com.

Forward-Looking Statements

This press release includes statements that may constitute "forward-looking" statements, including statements regarding the potential future success of the Company, its acquisitions, business lines, and strategies. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, market conditions and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.

Investor Relations Contact:

Matt Glover and John Yi
Gateway Investor Relations
1-949-574-3860
ELA@gatewayir.com

SOURCE: Envela Corporation

View source version on accesswire.com:
https://www.accesswire.com/651221/Envela-Expands-Electronics-Trade-In-Capabilities-with-Acquisition

FAQ

What did Envela Corporation announce on June 10, 2021?

Envela Corporation announced the acquisition of CExchange LLC's assets to enhance its electronics trade-in services.

How will the CExchange acquisition impact Envela's earnings?

The acquisition is expected to contribute to revenue and earnings growth for Envela's shareholders.

What is the strategic importance of acquiring CExchange for Envela?

Acquiring CExchange allows Envela to expand its presence in the environmentally friendly recommerce sector.

What services does CExchange provide?

CExchange offers electronics trade-in and recycling services for retailers, including Fortune 500 companies.