A-Mark Precious Metals announces agreement to acquire Monex Precious Metals

A-Mark Precious Metals (AMRK) announced a definitive agreement to acquire all of the outstanding equity of Monex Deposit Company and certain related entities. “After working with Monex for decades, we are thrilled to welcome them under the A-Mark umbrella,” said Roberts. “Michael and his team have built a strong business that has performed well even through periods of subdued demand. Their broad customer base and established storage business will be valuable assets as we move forward together.” The purchase price to be paid by the Company for the Monex acquisition is $33M consisting of $19M in cash and $14M in A-Mark common stock valued at $25.00 per share in accordance with the terms of the definitive agreement. There is a holdback of 29% of the common stock to satisfy potential indemnification claims. The definitive agreement also provides for an additional deferred purchase price of up to $20M based on the achievement of specified levels of cumulative pre-tax income. The transaction is expected to close within 60 days, subject to the satisfaction of customary closing conditions, including a minimum level of tangible net worth.