A-Mark (AMRK) is one of the largest wholesale distribution companies in the precious metals industry. In recent years, it has acquired various dealers in the US, the largest of which is JM Bullion.
According to a recent press release, A-Mark is expanding its 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. In addition to retail and wholesale trading of precious metals, LPM provides services such as secure storage, buy-back options, and assistance in setting up precious metals IRAs for retirement savings. The company’s partnerships with major mints and commitment to providing quality products and services to its customers are some of its best-known features.
An average from the most recent three-year period 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 $41.5 million, consisting of $37.5 million in cash and $4.0 million of A-Mark common stock. The company will receive an additional $37.5 million in cash incentives if it reaches specific EBITDA goals in the coming years.
Other Recent A-Mark Acquisitions
In addition to JM Bullion, A-Mark owns several 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 Mart (MCM) in a cash deal reportedly worth $5.5 million.
Pinehurst specializes in buying and selling gold and silver bullion, modern collectible coins, and numismatic rarities catering to investors and collectors.
Modern Coin Mart
Established in 2004, Modern Coin Mart (MCM) has 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 worldwide.
Besides 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 between A-Mark, Pinehurst, and Stack’s Bowers Numismatics, LLC.
Stack’s Bowers Galleries
Stack’s Bowers Galleries is a prominent numismatic auction house in New York with a long and distinguished history specializes 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 D. Brent Pogue Collection, worth more than $200 million. The collection features a number of notable coins from early American history, from 1792 through 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 US and was once owned by King Farouk of Egypt. Due to a unique legal circumstance, it is the only 1933 Double Eagle that is legally permitted to be owned by a private individual.