On April 29, 2022, A-Mark Precious Metals, Inc. (NASDAQ: AMRK) acquired an additional 40% equity interest in Silver Gold Bull Inc. (SGB) for approximately $56 million (US$44 million). This increased A-Mark’s ownership in SGB to 47.4% and expanded its international direct-to-consumer footprint.

The $56 million consideration included approximately $43.2 million (US$34 million) in cash and approximately $12.8 million (US$10 million) in A-Mark common stock. The deal, with an enterprise value of $140 million (US$110 million), required SGB to have at least $19.2 million (US$15 million) in net tangible assets at closing. A-Mark and SGB extended their supplier agreement to December 2026, and A-Mark secured an option to increase its stake to 75% within 18-27 months post-closing. The acquisition was expected to close in Q2 2022, pending customary conditions and regulatory approval.

For the 12 months ending March 31, 2022, SGB reported net sales of approximately $806.6 million (US$633 million), a gross profit of approximately $52.5 million (US$41.2 million), and pre-tax income of approximately $33.5 million (US$26.3 million). The company sold over 9.1 million ounces of silver and 160,000 ounces of gold, added around 77,600 new customers, and processed approximately 244,200 orders.

D.A. Davidson & Co. acted as financial advisor to A-Mark, with legal advice from Kramer Levin Naftalis & Frankel LLP and Frye & Hsieh LLP. MLT Aikins LLP served as legal advisor to SGB.