Stack Bowers Sold
JW77
Posts: 567 ✭✭✭✭✭
Distributed today via email:
"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.
To learn more about this transaction, click here to read the official press release."
Sincerely,
Greg Roberts, CEO
Brian Kendrella, President
Andrew Glassman, CFO
Comments
I wish them all the very best on their endeavor 👍
Thanks for the info.
https://youtube.com/watch?v=wwmUMvhy-lY - Pink Me And Bobby McGee
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https://youtube.com/watch?v=D0FPxuQv2ns - Ruby Starr (from 'Go Jim Dandy') Maybe I'm Amazed
RLJ 1958 - 2023
A-Mark dates back to the 1970's I believe, right ? Did some big hoard purchases in the day.
<To learn more about this transaction, click here to read the official press release.">
I kept clicking on "here" and nothing happened.
Best of luck!
10-4,
My Instagram picturesErik
My registry sets
Sorry, i could only copy and paste the text from the email; unable to insert a live link.
This coin week article indicates that Roberts was/is the CEO of Stacks and A-mark.
https://coinweek.com/stacks-bowers-merges-with-a-mark-precious-metals/
In a February 3 letter from CEO Greg Roberts, Company President Brian Kendrella, and CFO Andrew Glassman dated February 3, Stack’s Bowers Galleries, the rare coin industry’s second-largest auction firm, announced that it had entered into a definitive merger agreement to be acquired by A-Mark Precious Metals, of which Roberts is also the CEO. A....
https://youtube.com/watch?v=wwmUMvhy-lY - Pink Me And Bobby McGee
.
https://youtube.com/watch?v=D0FPxuQv2ns - Ruby Starr (from 'Go Jim Dandy') Maybe I'm Amazed
RLJ 1958 - 2023
Morningstar .Com
Has the financial details
I wonder if A-Mark had to pay a buyer's premium
Not sure if you were kidding but here it is ->
https://ir.amark.com/news-events/press-releases/detail/197/a-mark-expands-product-portfolio-into-collectibles-by
A-Mark is/was an AP
A-Mark is currently listed on the Mint website as an AP.
Source: https://www.usmint.gov/coins-precious-metal-coins/bullion-authorized-purchasers/
...or deal with the potted plant bidding in the back?
They were smart enough to figure it into their bid
The Redfield Hoard if I not mistaken.
8:38 AM ET 2/3/25 | Briefing.com
A-Mark Precious Metals has entered into a definitive agreement to acquire 100% of the stock of Spectrum Group International, the parent of Stack's Bowers Galleries, one of the world's largest rare coin and currency auction houses and a leading wholesale and retail dealer specializing in numismatic and bullion products, and the majority owner of Spectrum Wine, a global auctioneer, retailer and storage provider of fine and rare wine.
The transaction is intended to complement A-Mark's core bullion business by, among other benefits, increasing its reach into strategically adjacent luxury markets that are expected to offer higher margins and expanded customer bases.A-Mark will pay $92 million to acquire 100% of SGI's outstanding stock. The consideration will be comprised of 50% cash and 50% A-Mark common stock, with the stock portion valued as of the signing of the definitive agreement. The acquisition is expected to close within 30 days....
Stack's Bowers Galleries' unaudited financial highlights for the six months ended December 31, 2024, include the following: Total Revenue of $311.2 million consisting of $19.5 million from the Auction Service unit and $291.7 million from the Dealership unit Gross Profit of $30.0 million EBITDA of $10.3 million.
WHO WOULD HAVE GUESSED AUCTIONS WERE LESS THAN 10% OF STACK'S BUSINESS?
For those who are non finance aficionados, EBITDA =Earnings before interest, taxes, depreciation and amortization
Their auctions brought way more than 19.5, so 19.5 sounds like it’s probably their total commission income. 291.7 sounds like the total sales for the dealership side of the their business. But I don’t actually know anything.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
It’s no big secret that Greg Roberts is the CEO of Stacks and A-Mark, as it’s been publicly disclosed for quite some time. From what I’ve heard A-Mark is selling the more common, generic coins from the Fairmont hoard.
I wonder how long it will take to ship?
Yes. Here is the pcgs article on SB2025 (there are a few others with same).
https://www.pcgs.com/news/stacks-bowers-galleries-announces-record-year-in-2024
Stack’s Bowers Galleries successfully executed a year filled with remarkable price records, numerous awards and exciting growth. In the auction category, total prices realized set a new firm record of $275.6 million for the year!
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And the sec.gov A-mark relationship and transactions (with Stacks - in thousands)
Did not find a recent SBG or SGI report but not something I do so could easily have missed it.
Note that screenshot is kind of small but year ended June 30 2024, Sales 157,917 Purchases 67,173 (in thousands)
https://www.sec.gov/Archives/edgar/data/1591588/000095017024112405/amrk-20241002.htm
https://youtube.com/watch?v=wwmUMvhy-lY - Pink Me And Bobby McGee
.
https://youtube.com/watch?v=D0FPxuQv2ns - Ruby Starr (from 'Go Jim Dandy') Maybe I'm Amazed
RLJ 1958 - 2023
Wishing nothing but good luck and success to everyone who works at/for them!
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the 2024 revenue increased over the 2 previous years but the gross profit & margin decreased - - tough business.
It could be just me, but even though I do peruse their offerings and auctions recent years have decidedly purchased less from them and feel the internet site is not all that "friendly". Not directly related to the purchase, but I think it has had some impact indirectly. Just a further example of the "industrialization" of the "hobby". Hey ho here comes ever larger corporate America.
Well, just Love coins, period.
This has been a problem during the whole run up in PMs. The bid/ask spread was $50 to $100 at $1000 gold and it is still $50 to $100 at $2800 gold.
PMs are so liquid, I'm not sure that profit margins are the best way to look at it. It's like a stock trade fee. It doesn't cost more to trade $100 stock than a $1 stock.
A similar thing applies to all of their finance operations.
Definitely tough businesses.
Greg Roberts has been around a long time. I remember when he was solo before his involvement with A-Mark.
Yes this would seem a margin play for the conglomerate. Obvious synergies involved and crossover clientele. Don't forget also along with the low bullion spread you have increased shipping, storage and insurance.
Everybody is jealous of nvidia's 75% margins and look how Wall Street covets that factor in valuation.
You would think that volume would help offset that. More people now involved than before.
Heck, go pre-2000 and nothing was sold online...you not only reach a much wider audience but you cut your costs DRAMATICALLY from having to travel all over the country.