This marks A-Mark’s third deal with DA Davidson as the company expands its international DTC footprint with an investment in Silver Gold Bull, Canada’s leading electronic precious metals trading platform
IRVINE, CA July 7, 2022—(BUSINESS WIRE)–DA Davidson announced today that it has served as financial advisor to leading precious metals platform A-Mark Precious Metals, Inc. (NASDAQ: AMRK) (A-Mark) on the recently completed acquisition of an additional 40% of the outstanding equity interest in Calgary-based Silver Gold Bull Inc. (SGB). This transaction values SGB at approximately $110 million and will increase A-Mark’s ownership of SGB to 47.4%. The transaction also gives A-Mark an option to increase its ownership to 75% in the future.
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This marks the third transaction DA Davidson has helped A-Mark close as the company continues to expand its direct-to-consumer (DTC) footprint. Founded in 1965, A-Mark offers a range of bullion bars, coins and related products to wholesale and retail customers through a portfolio of brands and channels. The company’s global customer base includes sovereign and private mints, producers and manufacturers, refiners, dealers, financial institutions, industrial users, investors, collectors and e-commerce and other retail customers.
“Since our initial investment in SGB and throughout my time on their board, the A-Mark team and I have been continually impressed with SGB’s record of growth and profitability in their DTC markets,” said A-Mark CEO Greg Roberts . “With this investment, SGB’s success in Canada and emerging growth opportunities in other international markets will provide A-Mark with an additional international presence. We really appreciate the work that DA Davidson’s Consumer Group put in to help us close this deal. This marks our third deal with the DA Davidson team and we view them as partners who have been there every step of the way as we execute on our future growth strategy.”
“We are thrilled to have the opportunity to continue our partnership with A-Mark as they remain focused on growing their team, capabilities and delivering positive results for their customers and shareholders,” said Dan Friedman, managing director at Consumer Group in DA Davidson. “We believe that the partnership of A-Mark and SGB is based on a collaborative mindset and a unified vision. We wish them continued success and are excited to see what they can achieve together in the coming years.”
Summary of investments
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 entered into a four-year extension to the current supplier agreement, extending its term to December 2026.
A-Mark has the right to purchase an additional 27.7% of SGB’s outstanding equity to increase its ownership stake to 75%. The option can be exercised between 18 and 27 months after closing.
As a condition to closing, SGB was required to have at least $15 million in net tangible assets.
Transaction team contacts
Joe Schimelpfennig, Head of Consumer Group, Managing Director | [email protected]
Dan Friedman, Managing Director | [email protected]
About the DA Davidson Companies
DA Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions and municipalities nationwide. Founded in 1935 with corporate 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 capital markets and advisory services; 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 advisor providing fixed income portfolio and advisory services.
For more information, visit dadavidson.com.
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Andrea Popa, Head of Equity Markets Marketing | [email protected]