Tuesday, 19th July 2005 (2924 views)

Greg Manning Auctions is to buy out A-Mark Precious Metals of Santa Monica, California.

The business, which sells rare coins and stamps, and its majority shareholder is an auction house in Spain, is to pay $20 million in cash for the US company.

A-Mark is one of only six companies in the world allowed to buy gold, silver and platinum bullion wholesale directly from the US Mint.

It is hoped that the deal will increase Greg Manning's revenues by nine times, to $2.8 billion a year from $300 million.

A-Mark, which buys and distributes more than half the gold minted by the US Mint, had sales of $2.5 billion last year but generated a profit of only $2 million because of the thin margins associated with the wholesaling of precious metals.

"This will change the face of our company dramatically," chief executive Greg Manning said.

"We have dealt in bullion before, but never on this scale."

He added: "We think we can enhance their profit."

 

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