Greg Manning Auctions Acquires A-Mark Precious Metals
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Largest Private Precious Metals Dealer in North America and Key
Authorized Purchaser For U.S. Mint Adds Approximately $2.5 Billion in
Annual Revenue
WEST CALDWELL, N.J., July 18, 2005 – Greg Manning Auctions, Inc. (Nasdaq:
GMAI) announced today it has acquired the outstanding shares of A-Mark
Precious Metals, Inc. (APM), one of the largest private sellers of
bullion coins and bullion gold, silver and platinum to the wholesale
marketplace. Sales for APM’s 2005 fiscal year ending July 31, 2005 are
projected to be approximately $2.5 billion, with pre-tax income for the
same period estimated at $2.0 million.
APM is a full service precious metals trading company offering a wide
array of products and services on a global basis. As one of only six
U.S. Mint authorized purchasers of gold, silver and platinum Eagle
coinage in the world, A-Mark sources these products directly from the
U.S. Mint to A-Mark’s wholesale clientele. In addition to the U.S. Mint,
APM also has distributorships with other countries’ mints, including
Canada, Australia and China. Clients of APM include coin dealers, banks,
financial institutions, jewelers, collectors, investors, manufacturers,
as well as other mints and mines.
Greg Manning, First Vice Chairman, CEO and President of GMAI, stated,
“ The acquisition of A-Mark positions our company as one of the largest
rare coin and precious metals dealers in the country. Our wide range of
product and services, including wholesale, live auctions, Internet
auctions and retail, makes us the premier one-stop-shop in the coin
industry. Combined with APM purchasing coins directly from the U.S. and
other world mints, GMAI has an enhanced and diversified customer base
with the resources and financial strength necessary for long-term
success.”
“Clearly, this acquisition will have a profound impact on the overall
size and scope of our company, particularly our coin division - Spectrum
Numismatics,” Manning added. “We expect GMAI’s aggregate sales to
increase from a forecasted $300 million in fiscal 2005 to $2.8 billion
in fiscal 2006.”
The acquisition, which closed July 15, was an all-cash deal totaling
approximately $20 million. GMAI and Afinsa Bienes Tangibles, S.A. of
Madrid, its majority shareholder, were partners on the transaction, with
GMAI acquiring 80% of the outstanding common stock of APM and Afinsa
acquiring the remaining 20% interest through a wholly owned subsidiary.
A-Mark will maintain its existing $50 million syndicated line of credit,
thus providing a seamless transition of financing under GMAI, and will
fall under the management of GMAI’s Spectrum Numismatics.
Greg Roberts, CEO of Spectrum and new Chairman and CEO of A-Mark,
stated, “This acquisition will have a significant impact on our coin
division by way of incremental top-line growth with the ability to
expand APM’s profits through the additional sales venues that Spectrum
can provide. Currently, APM buys and distributes over 50% of the gold
minted each year by the U.S. Mint; penetration in this new field opens
up many possibilities for Spectrum to market new products on behalf of
its clients.” Roberts continued, “We are confident APM will immediately
benefit GMAI’s current fiscal year and beyond. In addition, we believe
that APM’s $50 million line of credit strengthens our financial position
as we move forward with our growth plan.”
Steven C. Markoff, former Chairman and CEO as well as founder of APM,
stated, “Based on the strong relationships I have built with Greg
Manning and Greg Roberts over the years, in addition to their leading
industry reputations, Greg Manning Auctions was a strategic fit when the
decision was made to sell APM. Spectrum’s intimate knowledge of the
numismatic and bullion marketplace, combined with our existing client
base, provides a number of synergies that can be realized almost
immediately. While it is difficult to sell a company that I have founded
and chaired for more than 40 years, I am confident the resources
available at GMAI will only enhance A-Mark and enable it to achieve even
greater success in the future.”
Mr. Markoff has agreed to remain with the company on a consultative
basis. Mr. Markoff will also continue as director and minority owner of
Goldline International, Inc., one of the largest retail sellers of rare
coins to the investing public and longstanding customer of A-Mark and
Spectrum.
Esteban Perez, Chairman of GMAI, commented, “A-Mark Precious Metals
has set the world class standard in the coin industry for customer
service and attention to detail critical in a business of this
magnitude. This acquisition, combined with our existing 17 operating
businesses, solidifies our position as a leading vertically integrated
company serving the distribution, wholesale and retail collectibles
market. We continue to demonstrate our ability to strengthen our
competitive position and expand our global reach through the integration
of strategic acquisitions, and drive future performance.”
Juan Antonio Cano, Chairman of Afinsa, stated, “On numerous occasions
I have stated that the position of ‘Grupo Afinsa’ as the majority
shareholder in GMAI is in keeping with our long-term vision to assist in
building a global collectibles company setting the highest standards in
every area of collectibles that the company enters. This has been our
vision since the founding of Afinsa 25 years ago. With the acquisition
of A-Mark, GMAI clearly has become a world leader in the collectibles
field serving a broad, worldwide range of collectors, investors and
professional dealers.
“We consider the purchase of A-Mark with Afinsa participating as a
minority financial partner benefits all shareholders by way of an
all-cash transaction that avoids any dilution of GMAI shares. This
template may be used in future acquisitions and will allow GMAI to
consider the acquisition of other important companies. We are committed
to GMAI’s vertical growth strategy and the company’s worldwide expansion
through synergistic acquisitions,” Cano concluded.
About Greg Manning Auctions, Inc. Greg Manning Auctions, Inc. is a
global collectibles merchant and auction house network, with operations
in North America, Europe and Asia, and on the Internet. This network was
created in September 2003 when GMAI and Auctentia, S.L. effectively
integrated their auction businesses, creating a GMAI-AUCTENTIA global
collectibles auction network.
In North America, GMAI is a leading traditional and e-commerce –
Internet, interactive telephone, Internet and live simulcast –
auctioneer and merchant/dealer of collectibles. Coins, stamps and sports
cards are offered at www.gregmanning.com and www.teletrade.com. Its
operations include the Greg Manning Auctions division, Ivy & Manning
Philatelic Auctions, H.R. Harmer of New York, Greg Manning Galleries,
Spectrum Numismatics, Teletrade, Nutmeg Stamp Sales, John Bull Auctions,
Ltd. in Hong Kong, Superior Sports Auctions, Bowers & Merena Auctions,
North American Certified Trading and Kingswood Coin Auctions.
In Europe, the leading auction houses affiliated with the network are
Auctentia Subastas of Madrid, Spain (operating under the name “Afinsa
Auctions”); Corinphila Auktionen of Zurich, Switzerland (65% owned by
GMAI); and the Koehler group of auction companies of Berlin (66.67%
owned by GMAI) and Wiesbaden, Germany.
GMAI also owns GMAI Auctentia Central de Compras (CdC) of Madrid,
Spain, which is engaged in the sale, marketing and production of owned
and third-party collectibles, with an emphasis on specialized philatelic
material.
Both GMAI and CdC currently act as exclusive supplier of collectibles
– primarily stamps and coins – on a worldwide basis to Afinsa Bienes
Tangible, S.A. of Madrid, Spain, one of the world leaders in marketing
tangible investment products, and GMAI’s majority shareholder.
Statements in this press release that relate to
future plans, objectives, expectations, performance, events and the like
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the Securities Exchange Act
of 1934. Future events, risks and uncertainties, individually or in the
aggregate, could cause actual results to differ materially from those
expressed or implied in these statements. Factors that may cause such
differences include changes in market conditions, changes in economic
environment, competitive factors and the other factors discussed in the
"forward-looking information" or "risk factors" sections included in
GMAI's filings with the Securities and Exchange Commission, including
GMAI's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q,
prospectuses and other documents that GMAI has filed with the
Commission. In particular, any statement related to GMAI’s expected
revenues or earnings or GMAI’s being well positioned for future
profitability and growth are forward-looking statements. The words
“should,” “believe,” “estimate,” “expect,” “intend,” “anticipate,”
“foresee,” “plan” and similar expressions and variations thereof
identify certain of such forward-looking statements, which speak only as
of the dates on which they were made. Additionally, any statements
related to future improved performance and estimates of revenues and
earnings per share are forward-looking statements. GMAI undertakes no
obligation to publicly update or revise any forward-looking statements.
Readers are cautioned not to place undue reliance on these
forward-looking statements.
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