A-Mark Expands Product Portfolio into Collectibles by Acquiring the Parent of Stack’s Bowers Galleries, A Leading Global Rare Coin Auction House and Dealer

Core Viewpoint - A-Mark Precious Metals, Inc. has entered into a definitive agreement to acquire 100% of Spectrum Group International, Inc., enhancing its position in high-value collectibles and expanding into adjacent luxury markets [1][2][9]. Acquisition Details - A-Mark will pay $92 million for the acquisition, with 50% in cash and 50% in A-Mark common stock, valued at the time of the agreement [3]. - The acquisition is expected to close within 30 days, pending shareholder approval and other closing conditions [3]. Company Background - A-Mark has a long-standing relationship with SGI, having been partially owned by SGI in the past, and both companies share leadership under CEO Greg Roberts [4]. - A-Mark operates through three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending, serving a diverse global customer base [12][13]. Spectrum Group International Overview - SGI is the parent company of Stack's Bowers Galleries, a leading auction house for rare coins and currency, and Spectrum Wine, a global auctioneer and retailer of fine wines [1][5]. - Stack's Bowers Galleries has a significant presence in numismatics, with a revenue of $536.4 million for the fiscal year ended June 30, 2024, and a gross profit of $46.1 million [7]. Strategic Benefits - The acquisition is expected to create cross-selling opportunities between A-Mark's Direct-to-Consumer and wholesale customers and SGI's collectors and dealers [10]. - Spectrum Wine's established position in the wine market is anticipated to support A-Mark's focus on collectibles and introduce a new revenue stream [8][9]. Management Commentary - A-Mark's CEO emphasized that the acquisition enhances the company's position in high-value collectibles and expands into a category with higher premiums and margins [9]. - The President of Stack's Bowers Galleries noted that the partnership will leverage A-Mark's financial strength to accelerate growth in auction, wholesale, and retail businesses [10].