A-Mark to Acquire LPM Group Limited, One of Asia’s Largest Precious Metals Dealers
El Segundo-based A-Mark Precious Metals, Inc., a leading fully integrated precious metals platform, has entered into a non-binding letter of intent with AMS Holding, LLC (AMS), a leading collector platform for the marketing and sales of vintage and modern coins, providing for three transactions, including the proposed acquisition of LPM Group Limited (LPM), one of Asia’s largest precious metals dealers.
The proposed transactions are subject to the preparation and execution of definitive agreements and are expected to close simultaneously in February 2024, subject to the receipt of customary closing conditions and required third-party consents or approvals, including the consent of the lenders under A-Mark’s Trading Credit Facility.
Established in 2012, LPM is one of the largest precious metals wholesalers in Asia. Headquartered at the heart of Hong Kong’s Central Financial District, LPM boasts the city’s largest numismatics showroom. LPM offers a wide selection of products through its retail store and 24/7 online trading platform, including recently released silver coins, gold bullion, certified coins and the latest collectible numismatic issues. The company’s global customer base spans sovereign and private mints, manufacturers and fabricators, investors, collectors, e-commerce customers and other retail customers.
“Acquiring LPM will be an important step in growing A-Mark’s international presence, specifically in Asia,” said A-Mark CEO Greg Roberts. “Having established a relationship with AMS through supplier agreements, the timing was opportune to integrate LPM into our portfolio and extend A-Mark’s global reach. With access to A-Mark’s inventory and resources, we expect that LPM will be able to secure larger purchase orders while providing customers with a broader set of product offerings. Our strategy is to expand LPM’s direct-to-consumer business through our proven e-commerce expertise, while offering its global customer base a broader portfolio of products and ancillary services such as storage and fulfillment.”
The letter of intent provides that A-Mark will acquire 100% of the issued and outstanding equity interests of LPM Group Limited (LPM) from AMS for a total upfront consideration of $41.5 million, consisting of $37.5 million in cash, subject to certain closing adjustments and $4.0 million of A-Mark common stock.
LPM CEO Charlie Chang, who is expected to sign a consulting agreement with A-Mark in connection with the transaction, commented: “Since our founding, LPM has been focused on developing strong relationships with both wholesale and retail customers across Asia. Joining forces with A-Mark, I am eager to capitalize on A-Mark’s extensive resources and capabilities to deepen our presence and expand our footprint within the retail and wholesale precious metals market in Asia.”