IRVINE, Calif.–(BUSINESS WIRE)–July 7, 2022–
DA Davidson announced today that it is serving as financial advisor to leading precious metals platform A-Mark Precious Metals, Inc. (NASDAQ: AMRK) (A-Mark) in connection with its recently completed acquisition an additional 40% of the outstanding Calgary-based stake in Silver Gold Bull Inc. (SGB). This transaction values SGB at approximately $110 million and will increase A-Mark’s stake in SGB to 47.4%. The transaction also offers A-Mark the opportunity to increase its stake to 75% in the future.
This is the third transaction that DA Davidson has helped A-Mark complete, as the company continues to expand its direct-to-consumer (DTC) footprint. Founded in 1965, A-Mark offers a range of bullion, coins and related precious metal products to wholesale and retail customers through a portfolio of brands and channels. The company’s global customer base includes sovereign and private mints, manufacturers and manufacturers, refiners, dealers, financial institutions, industrial users, investors, collectors, as well as e-commerce and retail customers. other retailers.
“Since our initial investment in SGB and throughout my tenure on their Board of Directors, the A-Mark team and I have been continually impressed with SGB’s track record of growth and profitability in their markets. DTC,” said Greg Roberts, chief executive of A-Mark. “Through this investment, SGB’s success in Canada and emerging growth opportunities in other international markets will provide A-Mark with additional international presence. We really appreciate the work the DA Davidson Consumer Group has put in to help us complete this transaction. This is our third transaction with the DA Davidson team and we consider them partners who have been there every step of the way as we execute our strategy for future growth.
“We are delighted to have had the opportunity to continue our partnership with A-Mark as they remain focused on growing their team, their capabilities and delivering positive results for their customers and shareholders,” said Dan. Friedman, general manager of consumer group at DA Davidson. “We believe the A-Mark and SGB partnership is based on a collaborative mindset and unified vision. We wish them much success and look forward to seeing what they can accomplish together over the next few years.
- The transaction valued SGB at approximately $110 million. Pursuant to the definitive agreement, the total consideration paid at closing consisted of $34 million in cash and 253,938 shares of A-Mark common stock.
- A-Mark and SGB have agreed to a four-year extension to the current supplier agreement, extending its expiration until December 2026.
- A-Mark has the right to purchase an additional 27.7% of SGB’s outstanding shares to increase its ownership to 75%. The option can be exercised between the 18th and 27th month following the closing.
- As a condition of closing, SGB had to have at least $15 million in net tangible assets.
Joe Schimmelpfennig, Head of Consumer Group, Managing Director | [email protected]
About DA Davidson Companies
DA Davidson Companies is an employee-owned financial services company providing a range of financial and advisory services to individuals, businesses, institutions and municipalities nationwide. Founded in 1935 with headquarters in Great Falls, Montana, and regional headquarters in Denver, Los Angeles, New York, Omaha and Seattle, the company has approximately 1,475 employees and offices in 28 states.
Subsidiaries include: DA Davidson & Co., a full-service investment firm providing wealth management, investment banking, capital markets and fixed income services, and advice; Davidson Investment Advisors, a professional asset management firm; DA Davidson Trust Company, a trust and wealth management company; and Davidson Fixed Income Management, a registered investment adviser that provides fixed income portfolio and advisory services.
Andreea Popa, Capital Markets Marketing Manager |[email protected]
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
SECTOR KEYWORD: PROFESSIONAL SERVICES NATURAL RESOURCES MINES/MINERALS FINANCE
SOURCE: DA Davidson Enterprises
Copyright BusinessWire 2022.
PUBLISHED: 07/07/2022 12:32 PM / DISK: 07/07/2022 12:32 PM
Copyright BusinessWire 2022.