A-Mark Precious Metals Acquires Stack’s Bowers Galleries
One of the largest auctioneers in the numismatic world has a new owner. Stack’s Bowers Galleries, including its parent company, entered into a definitive merger agreement to be acquired by A-Mark Precious Metals.
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According to a press release by A-Mark Precious Metals, the company will acquire Spectrum Group International, Inc. – the parent company of Stack’s Bowers Galleries and wine auctioneer Spectrum Wine – for 92 million dollars. This is intended to decisively strengthen A-Mark’s position in the market for valuable collectibles.
A-Mark Precious Metals is a giant in the precious metals trading sector with a revenue of 7.6b dollars in 2021. In addition to its wholesale business, the company also sells “direct-to-consumer” through subsidiaries such as JM Bullion and gold.com.
A Letter from the Management
More information can be found in this letter from the management of Stack’s Bowers Galleries, signed by CEO Greg Roberts, President Brian Kendrella and CFO Andrew Glassman:
Dear Friends,
We are excited to share an important milestone in the history of Stack’s Bowers Galleries. We have entered into a definitive merger agreement to be acquired by A-Mark Precious Metals. Under this agreement, Stack’s Bowers Galleries will continue to operate as a standalone, independently operated, wholly-owned subsidiary of A-Mark, a Nasdaq-listed company. We will join A-Mark’s portfolio of industry-leading brands, including JM Bullion, Goldline, LPM Group, and Collateral Finance Corporation (CFC).
For nearly a century, Stack’s Bowers Galleries has been recognized as a leading numismatic auctioneer, entrusted with the sale of some of the most historically significant and valuable rarities and collections, as well as tens of thousands of more modestly priced numismatic collectibles. In addition to our renowned auctions, we are also a premier wholesale and retail dealership, supplying rare coins, currency, and precious metals to other retailers as well as directly to collectors. This merger with A-Mark will provide us with the resources and scale to accelerate our growth and enhance the services we offer to our valued clients.
By leveraging A-Mark’s financial strength and industry expertise, we will be better positioned to continue to expand our auction and dealership businesses. We expect this partnership to enable us to invest in new and existing services, pursue strategic geographic expansion, and capitalize on opportunities for acquiring complementary businesses and advanced technologies. Additionally, access to A-Mark’s secured lending solutions through its Collateral Finance Corporation will provide enhanced financing options for consignors and bidders. The cross-promotion of our auction and retail listings to A-Mark’s more than 3 million direct-to-consumer customers presents a significant opportunity for growth and added value for our auction consignors.
Going forward, our leadership team will remain in place, ensuring that Stack’s Bowers Galleries continues to operate seamlessly with the same dedicated numismatists and employees you have come to know and trust. Your experience with Stack’s Bowers Galleries will remain uninterrupted, and we look forward to serving you with even greater capabilities.
A Press Release Published by A-Mark
A-Mark has published a detailed press release on the acquisition. Here you can read the entire text.
Among other things, it explains the reasons for the acquisition: “‘Acquiring SGI is a strategic step that significantly enhances A-Mark’s position in high-value collectibles,‘ said A-Mark CEO Greg Roberts. ‘By integrating Stack’s Bowers Galleries’ expertise in rare coins and paper currency, we are expanding into a bullion-adjacent category that commands higher premiums and stronger margins while also broadening our customer base.‘“
It is also emphasised that Spectrum and A-Mark have been close partners for a long time: “A-Mark has a long-standing relationship with SGI. A predecessor entity of SGI acquired 80% of A-Mark in 2005 and the balance of the Company in 2011. A-Mark was then spun-off into a separate publicly traded company in 2014. Greg Roberts is the Chief Executive Officer of both A-Mark and SGI, Mr. Roberts and another A-Mark executive comprise a majority of the board of SGI, and several A-Mark board members are shareholders of SGI. A-Mark established a special committee of independent members of its board to negotiate the acquisition on the Company’s behalf and to recommend approval of the acquisition.“
