Silver Towne Mint Acquires Assets of Regency Mint Manufacturing
A-Mark Precious Metals, Inc. (Nasdaq: AMRK) has announced that its subsidiary, Silver Towne Mint, has acquired substantially all assets of Regency Mint Manufacturing, for $2 million. This strategic acquisition is expected to increase A-Mark's total minting capacity to 100 million ounces annually over the long term.
Key benefits of the acquisition include:
- Additional capacity for proof-quality coins, rounds, and breakable rounds
- New extrusion equipment for faster and more efficient production of fractional products
- Increase in Silver Towne Mint's struck products capacity from 30 million to over 50 million ounces per year
- Acquisition of Regency Mint's entire customer list
The acquired equipment will be moved to Silver Towne Mint's facility in Winchester, Indiana, with some placed in storage until more facility space is created.
A-Mark Precious Metals, Inc. (Nasdaq: AMRK) ha annunciato che la sua consociata, Silver Towne Mint, ha acquisito sostanzialmente tutti gli asset di Regency Mint Manufacturing, per 2 milioni di dollari. Questa acquisizione strategica si prevede che aumenti la capacità di coniazione totale di A-Mark a 100 milioni di once all'anno nel lungo termine.
I principali vantaggi dell'acquisizione includono:
- Capacità aggiuntiva per monete di qualità prova, tondini e tondini fragili
- Nuove attrezzature di estrusione per una produzione più rapida ed efficiente di prodotti frazionari
- Aumento della capacità di prodotti coniati di Silver Towne Mint da 30 milioni a oltre 50 milioni di once all'anno
- Acquisizione dell'intero elenco clienti di Regency Mint
Le attrezzature acquisite saranno trasferite nella struttura di Silver Towne Mint a Winchester, Indiana, con alcune messe in stoccaggio fino a quando non verrà creata ulteriore spazio nella struttura.
A-Mark Precious Metals, Inc. (Nasdaq: AMRK) ha anunciado que su subsidiaria, Silver Towne Mint, ha adquirido prácticamente todos los activos de Regency Mint Manufacturing, por 2 millones de dólares. Se espera que esta adquisición estratégica aumente la capacidad total de acuñación de A-Mark a 100 millones de onzas anuales a largo plazo.
Los principales beneficios de la adquisición incluyen:
- Capacidad adicional para monedas de calidad prueba, rondas y rondas quebrables
- Nueva maquinaria de extrusión para una producción más rápida y eficiente de productos fraccionarios
- Aumento de la capacidad de productos acuñados de Silver Towne Mint de 30 millones a más de 50 millones de onzas por año
- Adquisición de toda la lista de clientes de Regency Mint
El equipo adquirido será trasladado a las instalaciones de Silver Towne Mint en Winchester, Indiana, con algunos almacenados hasta que se cree más espacio en la instalación.
A-Mark Precious Metals, Inc. (Nasdaq: AMRK)가 자회사인 Silver Towne Mint가 Regency Mint Manufacturing의 실질적으로 모든 자산을 200만 달러에 인수했다고 발표했습니다. 이 전략적 인수는 A-Mark의 전체 조폐 용량을 연간 1억 온스까지 증가시킬 것으로 예상됩니다.
인수의 주요 이점은 다음과 같습니다:
- 증명 품질의 동전, 라운드 및 깨지기 쉬운 라운드에 대한 추가 용량
- 분수 제품의 더 빠르고 효율적인 생산을 위한 새로운 압출 장비
- Silver Towne Mint의 제품 전조 수량이 연간 3000만에서 5000만 온스로 증가
- Regency Mint의 전체 고객 목록 인수
인수된 장비는 인디애나주 윈체스터에 있는 Silver Towne Mint의 시설로 이전되며, 일부는 추가 시설 공간이 창출될 때까지 보관됩니다.
A-Mark Precious Metals, Inc. (Nasdaq: AMRK) a annoncé que sa filiale, Silver Towne Mint, a acquis pratiquement tous les actifs de Regency Mint Manufacturing, pour 2 millions de dollars. Cette acquisition stratégique devrait augmenter la capacité totale de frappe d'A-Mark à 100 millions d'onces par an à long terme.
Les principaux avantages de l'acquisition comprennent :
- Capacité supplémentaire pour les pièces de qualité épreuve, les rondes et les rondes cassables
- Nouveau matériel d'extrusion pour une production plus rapide et plus efficace de produits fractionnés
- Augmentation de la capacité de produits frappés de Silver Towne Mint de 30 millions à plus de 50 millions d'onces par an
- Acquisition de l'ensemble de la liste de clients de Regency Mint
Les équipements acquis seront transférés dans les installations de Silver Towne Mint à Winchester, Indiana, certaines unités étant stockées jusqu'à ce qu'un espace supplémentaire soit créé.
A-Mark Precious Metals, Inc. (Nasdaq: AMRK) hat bekannt gegeben, dass ihre Tochtergesellschaft, Silver Towne Mint, nahezu alle Vermögenswerte von Regency Mint Manufacturing für 2 Millionen Dollar erworben hat. Diese strategische Übernahme wird voraussichtlich die gesamte Prägekapazität von A-Mark auf jährlich 100 Millionen Unzen erhöhen langfristig.
Die wichtigsten Vorteile der Übernahme umfassen:
- Zusätzliche Kapazität für Proof-Qualitätsmünzen, Runden und zerbrechliche Runden
- Neue Extrusionsgeräte für eine schnellere und effizientere Produktion von Bruchprodukten
- Erhöhung der Produktionskapazität von Silver Towne Mint von 30 Millionen auf über 50 Millionen Unzen pro Jahr
- Übernahme der gesamten Kundenliste von Regency Mint
Die erworbenen Geräte werden in die Einrichtungen von Silver Towne Mint in Winchester, Indiana, verlegt, wobei einige bis zur Schaffung zusätzlicher Platzmöglichkeiten eingelagert werden.
- Acquisition increases A-Mark's total minting capacity to 100 million ounces annually
- Enhances production capabilities with additional capacity for proof-quality coins and rounds
- New extrusion equipment enables faster and more efficient production of fractional products
- Expands customer base by acquiring Regency Mint's entire customer list
- Increases Silver Towne Mint's struck products capacity from 30 million to over 50 million ounces per year
- Initial $2 million cash outlay for the acquisition
- Potential short-term storage costs for equipment until facility space is expanded
- Integration challenges may arise when incorporating new equipment and customers
Insights
This acquisition by A-Mark Precious Metals is a strategic move that significantly enhances their production capabilities and market position. The
Key points to consider:
- Increased capacity: Silver Towne Mint's struck product capacity is expected to grow from 30 million to over 50 million ounces annually.
- Long-term growth: Total minting capacity could exceed 100 million ounces per year, including large-format bars.
- Customer base expansion: Acquisition of Regency Mint's entire customer list, potentially over 2,000 customers.
- Product diversification: New capabilities for proof-quality coins, rounds and fractional products.
This tuck-in acquisition strengthens A-Mark's vertical integration strategy and positions them for increased market share in the precious metals industry. The deal's modest price tag relative to the potential production increase suggests it could be highly accretive to earnings in the long run, pending successful integration and utilization of the new equipment.
This acquisition signals A-Mark's commitment to expanding its minting capabilities, which could have significant implications for the precious metals market:
- Increased supply: The potential to produce over 100 million ounces annually could impact silver prices if fully realized.
- Market consolidation: This move continues the trend of larger players absorbing smaller, family-owned operations in the precious metals industry.
- Competitive advantage: Enhanced production capacity and efficiency could allow A-Mark to offer more competitive pricing or capture higher margins.
- Customer retention: Inheriting Regency Mint's customer base provides immediate growth and cross-selling opportunities.
Investors should monitor how quickly A-Mark integrates the new equipment and capitalizes on the expanded capacity. The company's ability to maintain product quality while scaling up will be crucial. Additionally, the timing of this expansion amid fluctuating precious metal prices and demand could impact the acquisition's success. Overall, this move strengthens A-Mark's position in the minting segment of the precious metals value chain.
Strategic Tuck-In Acquisition Expected to Increase A-Mark’s Total Minting Capacity to 100MM Ounces Annually Over the Long Term
EL SEGUNDO, Calif., Oct. 14, 2024 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (Nasdaq: AMRK) (A-Mark), a leading fully integrated precious metals platform, today announced that its wholly owned subsidiary Silver Towne Mint, operated through AM&ST Associates, LLC, has acquired substantially all of the assets of Regency Mint Manufacturing, LLC (Regency Mint), for
With the acquisition, Silver Towne Mint acquired all of Regency Mint’s minting equipment, which is expected to be moved shortly to the Silver Towne Mint’s facility in Winchester, Indiana, as well as its entire customer list. Among the immediate benefits of the acquisition to Silver Towne Mint include additional capacity for proof-quality coins and rounds and breakable rounds, along with new extrusion equipment that will enable faster and more efficient production of fractional products.
The equipment from Regency Mint is expected to eventually increase Silver Towne Mint’s capacity of struck products from 30 million to more than 50 million ounces per year. Combined with large-format bars, the total minting capacity in the long term should exceed 100 million ounces per year. Some of the acquired equipment will be placed in storage until more facility space is created to fully utilize the new machinery.
“This acquisition marks another significant step forward, enhancing our minting capacity and expanding our customer base,” said A-Mark CEO Greg Roberts. “Regency Mint’s state-of-the-art equipment will not only improve our production processes but also substantially increase our output capabilities. We’re excited to welcome Regency Mint’s customers and serve them through our newly enhanced operations, offering an even broader range of services and products.”
Regency Mint CEO Josh Tanner added: “After 25 years of producing bullion and custom rounds as a family-owned and operated business, we are confident in our decision to entrust our long-standing relationships with over 2,000 customers into the care of A-Mark and Silver Towne Mint, who we believe demonstrate Regency Mint’s same core values of integrity, exceptional customer service and product excellence. Our customers should benefit greatly from the expanded services and products available through A-Mark’s vertically integrated business.”
About A-Mark Precious Metals
Founded in 1965, A-Mark Precious Metals, Inc. is a leading fully integrated precious metals platform that offers an array of gold, silver, platinum, palladium, and copper bullion, numismatic coins, and related products to wholesale and retail customers via a portfolio of channels. The company conducts its operations through three complementary segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The company’s global customer base spans sovereign and private mints, manufacturers and fabricators, refiners, dealers, financial institutions, industrial users, investors, collectors, e-commerce customers, and other retail customers.
A-Mark’s Wholesale Sales & Ancillary Services segment distributes and purchases precious metal products from sovereign and private mints. As a U.S. Mint-authorized purchaser of gold, silver, and platinum coins since 1986, A-Mark purchases bullion products directly from the U.S. Mint for sale to customers. A-Mark also has longstanding distributorships with other sovereign mints, including Australia, Austria, Canada, China, Mexico, South Africa, and the United Kingdom. The company sells more than 200 different products to e-commerce retailers, coin and bullion dealers, financial institutions, brokerages, and collectors. In addition, A-Mark sells precious metal products to industrial users, including metal refiners, manufacturers, and electronic fabricators.
Located in the heart of Hong Kong’s Central Financial District, A-Mark’s consolidated subsidiary, LPM Group Limited (LPM), is one of Asia’s largest precious metals dealers. LPM offers a wide selection of products to its wholesale customers, through its showroom and 24/7 online trading platform, including recently released silver coins, gold bullion, certified coins, and the latest collectible numismatic issues.
Through its A-M Global Logistics subsidiary, A-Mark provides its customers with a range of complementary services, including managed storage options for precious metals as well as receiving, handling, inventorying, processing, packaging, and shipping of precious metals and coins on a secure basis. A-Mark’s mint operations, which are conducted through its wholly owned subsidiary Silver Towne Mint, enable the company to offer customers a wide range of proprietary coin and bar offerings and, during periods of market volatility when the availability of silver bullion from sovereign mints is often product constrained, preferred product access.
A-Mark’s Direct-to-Consumer segment operates as an omni-channel retailer of precious metals, providing access to a multitude of products through its wholly owned subsidiaries, JM Bullion and Goldline. JMB owns and operates numerous websites targeting specific niches within the precious metals retail market, including JMBullion.com, ProvidentMetals.com, Silver.com, CyberMetals.com, GoldPrice.org, SilverPrice.org, BGASC.com, BullionMax.com, and Gold.com. Goldline markets precious metals directly to the investor community through various channels, including television, radio, and telephonic sales efforts. A-Mark is the majority owner of Silver Gold Bull, a leading online precious metals retailer in Canada, and also holds minority ownership interests in three additional direct-to-consumer brands.
The company operates its Secured Lending segment through its wholly owned subsidiary, Collateral Finance Corporation (CFC). Founded in 2005, CFC is a California licensed finance lender that originates and acquires loans secured by bullion and numismatic coins. Its customers include coin and precious metal dealers, investors, and collectors.
A-Mark is headquartered in El Segundo, CA and has additional offices and facilities in the neighboring Los Angeles area as well as in Dallas, TX, Las Vegas, NV, Winchester, IN, Vienna, Austria, and Hong Kong. For more information, visit www.amark.com.
A-Mark periodically provides information for investors on its corporate website, www.amark.com, and its investor relations website, ir.amark.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and investor presentations.
Important Cautions Regarding Forward-Looking Statements
Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These include statements regarding the anticipated benefits to A-Mark and its affiliates of the transactions. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results or circumstances to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following: Adverse facts and circumstances regarding the acquired assets that are discovered following the closing; greater than anticipated post-closing costs and management resources required to integrate the acquired assets; and the strategic, business, economic, financial, political and governmental risks and other risk factors affecting the businesses of the company and the industries in which it operates, as described in in the company’s public filings with the Securities and Exchange Commission.
Company Contact:
Steve Reiner, Executive Vice President, Capital Markets & Investor Relations
A-Mark Precious Metals, Inc.
1-310-587-1410
sreiner@amark.com
Investor Relations Contacts:
Matt Glover and Greg Bradbury
Gateway Group, Inc.
1-949-574-3860
AMRK@gateway-grp.com
FAQ
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