NEWPORT BEACH, Calif. -- Collectors Universe, Inc., a leading authentication and grading service for dealers and collectors of collectibles, and home to Professional Sports Authenticator (PSA), announced it has entered into a definitive agreement under which an investor group led by entrepreneur and sports card collector Nat Turner will acquire all of the company’s outstanding shares of common stock for $75.25 per share in cash.
The transaction represents a premium of approximately 30 percent over the company’s 60-day volume-weighted average price ending on Nov. 25, 2020, the last full trading day before Monday’s announcement. The transaction, which was approved by the Collectors Universe Board of Directors, represents a fully diluted equity value of approximately $700 million, and is not subject to any financing contingency.
Joseph J. Orlando, President and CEO of Collectors Universe, will continue to lead Collectors Universe, which will retain its headquarters in Santa Ana, Calif.
“After careful consideration, we are pleased to have reached an agreement that reflects the remarkable value creation Collectors Universe has achieved through its consistent execution during these challenging times,” said A.J. “Bert” Moyer, Chairman of the Collectors Universe Board of Directors. “This transaction will deliver an immediate cash premium to our shareholders, and create exciting opportunities for our employees, collectors and dealers around the world.”
Said Orlando, “Collectors Universe has firmly established itself as an industry leader, with the strongest and best-known brands in authentication and grading services. As we look to our next chapter, I’m excited to partner with Nat, a fellow lifelong collector and hobbyist whose passion for the collectibles space and substantial experience scaling technology businesses will help position Collectors Universe to drive continued growth and success in our PSA and PCGS (Professional Coin Grading Service) brands over the long-term.
“This transaction is a testament to the value that all of Collectors Universe’s talented employees have built. As we transition from a public to a private company, in partnership with Nat and a group of world-class financial investors and sports and collectibles enthusiasts, our customers will continue to see the same level of integrity, transparency, service and high-quality solutions that they expect from Collectors Universe.”
Turner, co-founder and CEO of New York-based Flatiron Health, was reported to be the owner of the world’s most prolific collection of Michael Jordan cards. The Chicago Tribune reported earlier this year that Turner estimates there are about 6,000 Jordan cards and he has about 4,000 of them. His Instagram account states he is a “Passionate card collector. Mainly ‘90s basketball, but also vintage baseball, unopened wax, Jordan, Kobe, LeBron. Nothing is FS.”
“Collecting sports cards and connecting with like-minded hobbyists has been a lifelong passion,” said Mr. Turner. “I have tremendous respect for the high-quality services Collectors Universe provides and the leadership position its talented team, led by Joe Orlando, has built. 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.”
Besides Turner, the Investor Group includes D1 Capital Partners L.P. and Cohen Private Ventures, LLC.