Acquisition Summary
- A-Mark will pay approximately
$44.0 million for 40% of the outstanding equity interest in SGB, implying an enterprise value of$110.0 million . Total consideration is comprised of$34.0 million in cash and$10.0 million of A-Mark common stock. - As a condition to closing, SGB will be required to have at least
$15.0 million in net tangible assets. - A-Mark and SGB will enter into a four-year extension to the current supplier agreement extending its expiration to
December 2026 . - A-Mark will have the right to purchase an additional 27.7% of the outstanding equity of SGB to bring its ownership interest to 75%. The option is exercisable between months 18 and 27 following closing.
The acquisition is expected to close in the second quarter of calendar 2022, subject to customary closing conditions and regulatory approval.
SGB financial and operational highlights for the 12 months ended
- Net sales of
$633.0 million , gross profit of$41.2 million (6.5% of net sales), and pre-tax income of$26.3 million (4.2% of net sales); - Sold more than 9.1 million ounces of silver (up approximately 47.5% year-over-year) and more than 160,000 ounces of gold (up approximately 29% year-over-year);
- Added approximately 77,600 new customers in the period, for a total of 270,100 customers at
March 31,2022 (up approximately 48% period-over-comparable period); - Processed approximately 244,200 orders in the period (up approximately 15% period-over- comparable period)
Management Commentary
“Since our initial investment in SGB and throughout my time on their Board or as a Board observer, since 2014, the A-Mark team and I have been continually impressed with SGB’s track record of growth and profitability within their DTC markets,” said A-Mark CEO
Bob Belandis, President, and Co-founder of Silver Gold Bull commented: “This is an exciting day for Silver Gold Bull. We have enjoyed substantial growth since we started our company 13 years ago through the hard work of our committed team. Strengthening our partnership with A-Mark will allow SGB to continue being well-positioned to capture opportunities within the online bullion market for
About
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Important Cautions Regarding Forward-Looking Statements
Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following: the inability to satisfy the conditions to the closing of the SGB investment; the failure of SGB to maintain its unique customer base or changes in the buying preferences of this customer base; the failure otherwise to achieve anticipated benefits of the investment; changes in consumer demand and preferences for precious metal products generally; the continuing effects of the COVID-19 pandemic and the eventual return to normalized business and economic conditions; and the strategic, business, economic, financial, political and governmental risks described in in the company’s public filings with the
The words "should," "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Additionally, any statements related to future performance are forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.
Company Contact:
1-310-587-1410
sreiner@amark.com
Investor Relations Contact:
Gateway Investor Relations
1-949-574-3860
AMRK@gatewayir.com
Source:
2022 GlobeNewswire, Inc., source