US-based precious metals trading firm A-Mark has acquired precious metals e-commerce platform JM Bullion (JMB).
Last month, A-Mark reached a definitive agreement to purchase JMB, of whose issued and outstanding shares A-Mark owned 20.5%.
The deal concluded after the remaining 79.5% of the shares were purchased for around $138.3m.
The purchase price was financed with cash on hand and from net proceeds from A-Mark’s public offering of common stock, which closed on 8 March.
DA Davidson and Co acted as financial advisor to A-Mark, while Kramer Levin Naftalis and Frankel acted as legal advisor.
A-Mark CEO Greg Roberts said: “Today is a significant day for our and JMB’s employees, customers, partners and shareholders, as we complete the acquisition of JMB and create the industry’s preeminent fully integrated precious metals platform.
“As the anchor to our multifaceted direct-to-retail strategy, JMB enables us to more effectively capitalise on the growing demand for precious metals through online and e-commerce channels.”
Following the acquisition, JMB CEO and co-founder Michael Wittmeyer and chairman Kendall Saville joined A-Mark’s board of directors.
Wittmeyer will serve as executive vice-president of A-Mark’s Direct Sales segment, which includes the company’s existing Goldline business.
With the addition of Wittmeyer and Saville, A-Mark’s board of directors now consists of nine directors, including seven independent directors.
Wittmeyer has also entered an employment agreement with JMB, effective from the closing of the deal. The term of the agreement is due to end on 30 June 2024.