A-Mark Precious Metals closes acquisition of LPM Group

A-Mark Precious Metals has closed its previously announced transactions with AMS Holding. This transaction included the acquisition of LPM Group Limited. A-Mark has acquired 100% of the issued and outstanding equity interests of LPM from AMS for a total upfront consideration of $41.9 million, consisting of $37.9 million in cash and $4.0 million of A-Mark common stock. At the close of the transaction, LPM had a tangible net worth of $11.9 million inclusive of net cash and precious metals inventories. AMS has the potential to earn up to an additional $37.5 million in cash based on achievement of certain Earnings before Interest, Taxes, Depreciation, and Amortization targets for 2024, 2025 and 2026. A-Mark’s affiliate, Pinehurst Coin Exchange, Inc. (Pinehurst), one of the nation’s largest distributors of modern certified coins of which A-Mark owns 49.0%, has acquired all the assets of ModernCoinMart from AMS for $5.5 million. MCM is one of the fastest growing dealers in the U.S. and ships to many international destinations. As part of the asset purchase, Pinehurst has acquired $3.0 million of inventory, along with MCM’s customer list, brand name and related intellectual property. A joint venture consisting of A-Mark, Pinehurst and Stack’s Bowers Numismatics, LLC, an affiliate of A-Mark, has acquired a common equity interest in AMS equivalent to 10% of the total, fully diluted common equity interests in AMS for $6.19 million. As part of the transaction, A-Mark CEO Greg Roberts has joined the AMS board of directors.