Global investment firm Blackstone (BX) has announced that funds managed by its Tactical Opportunities business have agreed to acquire a majority stake in the Certified Collectibles Group (CCG) in a transaction valuing the company at more than $500 million.
The CCG is a provider of expert, impartial, tech-enabled services that add value and liquidity to collectibles. The terms of the deal have not been disclosed so far.
Following the news, shares of Blackstone declined modestly to close at $96.50 in Thursday’s extended trading session.
Over the past decades, the CCG has expanded its services massively, having certified over 62 million collectibles with a combined market value of about $50 billion. Blackstone, with its investment, is looking to keep this growth momentum going and further expand the company’s reach in terms of product and geography.
Principal at Blackstone C. C. Melvin Ike said, “We have been closely following the rise of the global physical and digital collectibles industry for several years and we were drawn to CCG because of their leadership role in the categories that they serve, and Blackstone’s ability to grow the platform through both organic and inorganic initiatives.” (See Blackstone stock chart on TipRanks)
Recently, Citigroup analyst William Katz reiterated a Hold rating on the stock. However, the analyst raised the price target from $75.50 to $91, which implies downside potential of 6.3% from current levels.
Consensus among analysts is a Strong Buy based on 9 Buys and 3 Holds. The average Blackstone price target of $91.91 implies downside potential of 5.35% from current levels. Shares of the company have gained 75.3% over the past year.
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