A-Mark (AMRK) is one of the largest wholesale distribution companies in the precious metals space. In recent years, A-Mark has acquired a variety of dealers in the US, the largest being JM Bullion.
According to a recent press release, A-Mark is expanding their presence in the markets throughout Asia with the announced acquisition of Hong Kong based LPM Group Limited.
LPM Group Limited (LPM) is an established precious metals retailer and wholesaler that offers a variety of unique products and collectibles. Besides retail and wholesale trading of precious metals, LPM provides a range of services such as secure storage, buy-back options, and assistance with setting up precious metals IRAs for retirement savings. The company is recognized for its partnerships with major mints and its commitment to providing quality products and services to its customers.
An average from the most recent 3 year period prior shows that LPM has roughly 27,000 retail customers. Annual sales of precious metals include 108,000 ounces of gold and 6.3 million ounces of silver.
The acquisition price for all assets is reported to be $41.5 million, consisting of $37.5 million in cash and $4.0 million of A-Mark common stock. An additional $37.5 million in cash incentives for the company to reach specific EBITDA goals in the coming years.
In addition to JM Bullion, A-Mark has an ownership stake in a number of well-known bullion dealers such as BGASC, Silver.com, Pinehurst Coin Exchange, Provident Metals and BullionMax.
In the same announcement, A-Mark has announced that Pinehurst will acquire Modern Coin Mark (MCM) in a cash deal reportedly worth $5.5 million.
Pinehurst specialize in buying and selling gold and silver bullion, modern collectible coins, and numismatic rarities catering to both investors and collectors.
Established in 2004, MCM has grown to become one of the leading online retailers of modern coins, bullion products, and numismatic collectibles. MCM is known for its wide variety of gold, silver, platinum, and palladium coins from renowned mints around the world.
Apart from bullion, MCM deals in rare and collectible coins, primarily offering graded and certified coins by reputable third party grading services like NGC (Numismatic Guaranty Corporation) and PCGS (Professional Coin Grading Service).
Additionally, the announcement includes a joint venture consisting of A-Mark, Pinehurst and Stack’s Bowers Numismatics, LLC.
Stack’s Bowers Galleries is a prominent numismatic auction house in the United States, with a long and distinguished history specializing in rare coins, currency, and precious metals.
Stack’s Bowers has a reputation for handling some of the most significant numismatic rarities and collections in history, including the The D. Brent Pogue Collection. worth more than $200 million dollars. The $200 million collection included a number of notable coins from early American history during the period from 1792 through the 1830.
In 2021, the auction house made headlines when an ultra-rare 1933 Saint-Gaudens Double Eagle sold for $18.9 million, becoming the most expensive coin ever sold at auction. This coin is one of the last gold coins intended for circulation in the U.S. and was once owned by King Farouk of Egypt. It is the only 1933 Double Eagle that is legally permitted to be owned by a private individual, due to a unique legal circumstance.