An investment group led by entrepreneur and sports card collector Nat Turner has entered into a definitive agreement with Collectors Universe Inc., a collectibles authenticator and grader, to acquire all outstanding shares of its common stock for an all-cash price of $75.25 per share, the companies recently announced in a news release.
“Collecting sports cards and connecting with like-minded hobbyists has been a lifelong passion,” Turner said in the news release. “We are committed to bringing the resources and expertise necessary to expand the company’s operational capacity and technological capabilities, while enhancing the accuracy and consistency for which Collectors Universe is known.”
Turner’s investment partners include D1 Capital Partners L.P., a New York City-based global investment firm founded in 2018 by former hedge fund manager David Sundheim, and Cohen Private Ventures LLC, a Stamford, Conn.-based venture capital firm co-founded by CIO Andrew B. Cohen.
Cohen manages family office activities on behalf of Steven A. Cohen and his family. Earlier this year, Steven A. Cohen, a billionaire hedge fund manager, bought a majority share in the New York Mets baseball team.
The Collectors Universe transaction represents a premium of approximately 30% over the company’s 60-day volume-weighted average price ended on November 25, the last full trading day before announcement of the M&A deal. The transaction, which was approved by the Collectors Universe board of directors, represents fully diluted equity value of about $700 million, and is not subject to any financing contingency.
A.J. “Bert” Moyer, chairman of Collectors Universe, said in the news release that his board carefully considered the deal before agreeing to it as a value proposition.
“This transaction will deliver an immediate cash premium to our shareholders, and create exciting opportunities for our employees, collectors and dealers around the world,” he said.
Under terms of the transaction, Joseph J. Orlando, president and CEO of Collectors Universe, will continue to lead the company, which will retain its headquarters in Santa Ana, Calif.
The transaction is expected to close in the first quarter of 2021. Upon completion of the transaction, Collectors Universe will become a privately held company and its shares will no longer be listed on any public market.