Benzinga | Feb 9, 2021 04:29PM EST

A-Mark to Acquire Remaining 79.5% Of Oustanding Shares Of JM Bullion For $138.3M

* A-Mark will pay a total of $138.3 million for the 79.5% of JMB it does not currently own, implying a total valuation for JMB of $174.0 million. Total consideration is comprised of $103.7 million of cash and $34.6 million of A-Mark common stock. The total consideration is subject to certain closing adjustments, customary working capital adjustments, and expense sharing arrangements.

* JMB CEO and Co-Founder Michael Wittmeyer and Chairman Kendall Saville will join A-Mark's board of directors. Wittmeyer will remain CEO of JMB and will assume the title of Executive VP of A-Mark's Direct Sales segment, which also includes A-Mark's existing Goldline business.

* A-Mark intends to finance the cash portion of the purchase price with cash on hand and through any available means of financing, including a public or private equity or convertible debt offering.

* The acquisition is expected to close in the first quarter of calendar 2021, subject to customary closing conditions and regulatory approval.

JMB financial and operational highlights for the fiscal year ended December 31, 2020 include:

* Net sales of $1.49 billion, gross profit of $78.9 million, and pre-tax income of $62.2 million;

* 1.3 million total users (up approximately 30% year-over-year), of which more than 300,000 purchased products during the year (up approximately 70% year-over-year);

* Processed 794,000 orders (up approximately 80% year-over-year); and

* Sold more than 21 million ounces of silver (up approximately 120% year-over-year) and more than 500,000 ounces of gold (up approximately 170% year-over-year).