A-Mark Continues Expansion into the Bullion Adjacent Collectible Coin Market by Acquiring Stack’s Bowers Galleries, AMS Holding, LLC, and Pinehurst Coin Exchange, Inc.

Core Viewpoint - A-Mark Precious Metals, Inc. is expanding its presence in the collectible coin market through strategic acquisitions, which are expected to enhance gross margins and attract new customers during periods of low bullion volatility [1][13]. Group 1: Acquisition Details - A-Mark acquired 100% of Spectrum Group International, Inc. (SGI) for $92.0 million, consisting of$46.0 million in cash and $46.0 million in A-Mark stock valued at$27.51 per share [2][12]. - The company agreed to pay $50.0 million in cash for the remaining 90$6.5 million in cash to acquire 51% of Pinehurst Coin Exchange, Inc. and may pay up to an additional $5.3 million based on performance [4][12]. Group 2: Company Overviews - AMS has a strong sales and marketing engine with over 500,000 customers, generating total revenue of$203.8 million and adjusted EBITDA of $9.3 million for the year ended December 31, 2024 [7][12]. - Pinehurst generated approximately 35$215.8 million and EBITDA of $7.7 million for the year ended December 31, 2024 [10][12]. - A-Mark's subsidiary LPM Group Limited is a leading precious metals dealer in Asia, expanding its operations to Singapore [5][20]. Group 3: Strategic Importance - The acquisitions of AMS and Pinehurst are aligned with A-Mark's vision to penetrate the luxury market and integrate several hundred thousand new customers into its ecosystem [13][14]. - The acquired businesses are expected to benefit from A-Mark's global sourcing network and logistics platform, enhancing their operational capabilities [13][14]. - A-Mark's CEO emphasized the potential for accretive earnings from these acquisitions, particularly during periods of limited bullion market volatility [13][14].