Holland Gold acquired Amsterdam Gold from Value8

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Name of the deal: Holland Gold acquired Amsterdam Gold from Value8
Date announced: 11 September 2024
Date closed: 11 September 2024
Published value: 5-25 mln
Buyer(s): Holland Gold
Target(s): Amsterdam Gold
Seller: Value8

Involved firms and advisors

Involved firms and advisors buy side:
Financial Due Diligence – SINCERIUS
Tax Advisory – Atlas Fiscalisten

Pitch

Brief description deal / Deal outline
Holland Gold, a Dutch company focusing on the purchase and sale of precious metals to individuals and companies in the form of bars and coins as well as the storage of precious metals, has acquired AmsterdamGold, a Dutch company active in trading precious metals, from Value8, a Dutch private equity firm. This acquisition strengthens Holland Gold’s position in the precious metals trade and storage sectors across the Netherlands and Belgium. The combination expects to realise synergy benefits both on the revenue side (cross selling) and on the cost side.

About Holland Gold
Holland Gold, founded in 2013, is the largest online gold dealer in the Netherlands, specializing in the buying and selling of precious metals such as gold and silver. The company provides secure storage solutions for these metals and focuses on educating customers about the benefits of investing in precious metals as a hedge against inflation and financial uncertainty.

About Amsterdam Gold
AmsterdamGold is a prominent Dutch company specializing in the trading of precious metals, particularly gold and silver. Founded in 2008, it focuses on providing a user-friendly platform for customers to buy and sell physical precious metals. The company also offers secure storage solutions for these investments and aims to educate investors about the advantages of investing in precious metals as a safeguard against financial instability and inflation.

About Value8
Value8 is a Dutch private equity firm founded in 2011 that focuses on investing in small to mid-sized companies in various sectors, including technology, healthcare, and consumer goods. The firm employs a hands-on approach, actively working with portfolio companies to enhance their value through strategic guidance, operational improvements, and financial support. Value8 aims to achieve sustainable growth and generate attractive returns for its investors.

Why should this deal win the Award for Best Deal Small-Cap 2024
This deal deserves the Award for Best Deal Small-Cap 2024 due to the strategic synergies and significant growth it enables within the precious metals market. The merger between AmsterdamGold and Holland Gold creates a strong player in the Netherlands and Belgium, offering a broader range for investors. This not only provides financial benefits for the involved parties but also contributes to strengthening market position and increasing customer satisfaction. The deal illustrates a good example of growth through collaboration, with the potential to expand further into international markets.

Deal Rationale
The acquisition of AmsterdamGold by Holland Gold is driven by several strategic and financial factors. The merger offers significant synergy benefits, allowing for cross-selling opportunities that enhance the range of products and services available to customers, leading to an improved customer experience and increased sales. This collaboration strengthens their market position in the precious metals trade across the Netherlands and Belgium, enabling them to capture a larger market share and gain a competitive advantage. The deal also lays the groundwork for international growth, making it easier for the combined entity to expand into new markets and reach different customer segments. Customers will enjoy sharper prices, a broader selection of offerings, and enhanced service, which is crucial for fostering loyalty in a competitive market. For the investment firm Value8, the sale of AmsterdamGold presents a profitable exit, reflecting the strong performance of the company and its expected growth under Holland Gold. Additionally, the acquisition allows Holland Gold to leverage AmsterdamGold’s expertise, further improving the quality of service and customer information provided to investors.

What is the impact of this deal for the company
The impact of this deal for Holland Gold is significant. The acquisition increases Holland Gold’s revenue from €150 million to €200 million and the value of the stored precious metals from €200 million to €400 million. This growth not only strengthens the company’s financial position but also provides opportunities for cross-selling and cost savings through synergy benefits. Furthermore, it positions the company as a leading player in the precious metals trade, which is essential for further expansion and internationalization.

What is the impact of this deal for the direct stakeholders
For the direct stakeholders, including the shareholders of both companies and investment firm Value8, the deal offers an attractive selling opportunity with a sale price slightly above book value. For employees, the integration with Holland Gold means opportunities for growth and development within a larger organization. Customers benefit from improved service, sharper prices, and a wider range of precious metals, which helps them better protect themselves against financial crises.

What is the impact of this deal on society
The merger also has a positive impact on society by increasing access to precious metals for a broader group of investors. By providing the ability to easily invest in gold and silver, this deal can help enhance financial stability and protection against inflation for consumers. Moreover, the collaboration contributes to strengthening the Dutch and Belgian precious metals markets, which can yield economic benefits for the region.

What was most complex about this deal
The complexity of this deal lay in the integration of two different organizations with their own systems, cultures, and business models. Combining the operations of AmsterdamGold and Holland Gold requires careful planning and execution to realize synergies without disrupting existing customer service. Additionally, it was necessary to obtain approval from regulators such as ACM and AFM, which adds an extra layer of regulation and compliance to the process. Ensuring a smooth transition and maintaining customer trust were crucial challenges in this acquisition.