Greg Manning Auctions Buys A-Mark

Greg Manning Auctions Inc., which sells rare coins and stamps, acquired 80% of closely held A-Mark Precious Metals Inc. for $16 million.

Afinsa Bienes Tangibles bought the rest of A-Mark for $4 million, said Greg Manning, chief executive of West Caldwell, N.J.-based Greg Manning Auctions, on Monday. The acquisition closed Friday. Closely held Afinsa Bienes, based in Madrid, owns 69% of Greg Manning Auctions.

A-Mark, based in Santa Monica, is one of six companies authorized by the U.S. Mint to purchase gold, silver and platinum Eagle coins. Its sales in the fiscal year ending July 31 are projected to be about $2.5 billion, with pretax profit estimated at $2 million, Greg Manning Auctions said.

“The acquisition of A-Mark positions our company as one of the largest rare coin and precious metals dealers in the country,” Manning said. The acquisition will boost sales to about $2.8 billion in the year ending in June 2006 from about $300 million last year, he said.

Shares of Greg Manning Auctions gained 74 cents to $12.80.

“The current economic climate is more favorable to hard assets and collectibles, real estate and art,” Greg Roberts, A- Mark’s new CEO, said from Madrid. “We’ve seen a very good influx of money in the coin business from wealthy individuals who are looking to diversify.”

Greg Manning Auctions said Steven C. Markoff, founder of A-Mark, would join as a consultant. A-Mark will maintain a $50-million credit line, Greg Manning Auctions said.

“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 Greg Manning Auctions shares, said Afinsa Chairman Juan Antonio Cano.

Greg Manning Auctions on March 28 bought the Fournier Archives from Champion Stamp Co. in New York for about $6 million.