A-Mark Expands into Collectibles with Acquisition of Spectrum Group

Deal News | Feb 03, 2025 | Globenewswire

A-Mark Expands into Collectibles with Acquisition of Spectrum Group

A-Mark Precious Metals, a leading precious metals platform, has entered into a definitive agreement to acquire Spectrum Group International, the parent company of Stack’s Bowers Galleries, for $92 million. This strategic acquisition is designed to expand A-Mark's footprint into the collectibles sector, leveraging SBG's position as a top rare coin auction house. The transaction will be paid with 50% cash and 50% A-Mark common stock. A-Mark's CEO, Greg Roberts, emphasizes the synergy between the two companies, highlighting opportunities for expanding market reach and enhancing margins through diversification into high-value collectibles, including rare coins and fine wine. Financial advisors Roth Capital Partners and D.A. Davidson & Co., and legal counsel firms Kramer Levin Naftalis & Frankel LLP and Olshan Frome Wolosky LLP are facilitating the transaction, which is pending regulatory and shareholder approval. A-Mark aims to finalize the acquisition within 30 days.

Sectors

  • Precious Metals and Collectibles
  • Auction and Retail

Geography

  • United States – A-Mark Precious Metals is headquartered in El Segundo, California, and the acquisition involves American-based Spectrum Group International and Stack's Bowers Galleries.
  • Global – SBG has a global presence with offices in the United States, Europe, and Asia, expanding A-Mark's international reach in the collectibles and precious metals markets.

Industry

  • Precious Metals and Collectibles – A-Mark operates as a fully integrated precious metals platform, and its acquisition of SGI expands into the collectibles market, specifically in high-value numismatic and fine wine sectors.
  • Auction and Retail – Stack’s Bowers Galleries and Spectrum Wine operate significant auction services, dealing in rare coins and fine wine, thus integrating into A-Mark's direct-to-consumer and wholesale channels.

Financials

  • $92 million – Price A-Mark will pay to acquire 100% of Spectrum Group International.
  • $536.4 million – Total Revenue for SBG for the fiscal year ended June 30, 2024.
  • $46.1 million – Gross Profit for SBG for the fiscal year ended June 30, 2024.
  • $10.9 million – EBITDA for SBG for the fiscal year ended June 30, 2024.
  • $311.2 million – Unaudited Total Revenue for SBG for the six months ended December 31, 2024.
  • $30.0 million – Unaudited Gross Profit for SBG for the six months ended December 31, 2024.
  • $10.3 million – Unaudited EBITDA for SBG for the six months ended December 31, 2024.

Participants

NameRoleTypeDescription
A-Mark Precious Metals, Inc.Acquiring CompanyCompanyA leading fully integrated precious metals platform headquartered in El Segundo, CA.
Spectrum Group International, Inc.Target CompanyCompanyThe parent of Stack’s Bowers Galleries, specializing in luxury collectibles and fine wines.
Stack’s Bowers GalleriesSubsidiaryCompanyOne of the largest rare coin and currency auction houses worldwide, part of SGI.
Spectrum WineSubsidiaryCompanyA global auctioneer and retailer of fine and rare wine, part of SGI.
Roth Capital PartnersFinancial AdvisorCompanyActing as financial advisor to A-Mark's special committee.
Kramer Levin Naftalis & Frankel LLPLegal AdvisorCompanyProviding legal counsel to A-Mark's special committee.
D.A. Davidson & Co.Financial AdvisorCompanyActing as financial advisor to Spectrum Group International.
Olshan Frome Wolosky LLPLegal AdvisorCompanyProviding legal counsel to Spectrum Group International.
Greg RobertsCEOPersonCEO of both A-Mark Precious Metals and Spectrum Group International.
Brian KendrellaPresidentPersonPresident of Stack’s Bowers Galleries.