Core Viewpoint - A-Mark Precious Metals, Inc. is expanding its presence in the collectible coin market through strategic acquisitions of Spectrum Group International, AMS Holding, and Pinehurst Coin Exchange, which are expected to enhance gross margins and customer base during periods of low bullion volatility [1][14]. Group 1: Acquisition Details - A-Mark acquired 100% of Spectrum Group International (SGI) for 46.0 million in cash and 27.51 per share [2][13]. - The company agreed to pay 9.0 million based on performance benchmarks [3][13]. - A-Mark paid 5.3 million based on performance [4][13]. Group 2: Company Overviews - AMS Holding, founded in 1984, generated total revenue of 9.3 million for the year ended December 31, 2024, serving over 500,000 customers [7][13]. - Pinehurst Coin Exchange, established in 2005, generated approximately 7.7 million in EBITDA for the year ended December 31, 2024, with nearly 300,000 customers [10][13]. - Spectrum Group International, parent of Stack's Bowers Galleries, generated total revenue of 10.9 million for the fiscal year ended June 30, 2024 [13]. Group 3: Strategic Importance - The acquisitions are expected to bring several hundred thousand new customers into A-Mark's ecosystem and enhance gross margin profiles, particularly during periods of limited bullion market volatility [14][15]. - A-Mark's CEO emphasized the integration of the acquired businesses into A-Mark's global sourcing network and logistics platform, which is anticipated to create synergistic selling opportunities [15].
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.