Jewelry Distributor Quality Gold to Go Public at $1B Valuation via Tastemaker Merger – IPO Edge
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Jewelry Distributor Quality Gold to Go Public at $1B Valuation via Tastemaker Merger
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Jewelry Distributor Quality Gold to Go Public at $1B Valuation via Tastemaker Merger

By John Jannarone 

Quality Gold Inc., a profitable logistics and jewelry distributor, plans to go public through a merger with Tastemaker Acquisition Corp. (Nasdaq: TMKR), the company announced Friday, confirming an earlier IPO Edge report.

The company, which generated revenue of $534 million and adjusted EBITDA of $82 million in the year through March, will have an enterprise value of $989 million. After the deal closes, the new entity will be named Quality Gold Holdings, Inc. and trade on Nasdaq under the “QGLD” ticker.

The deal comes amid a virtually frozen IPO market where investors have shunned speculative companies. But Quality Gold stands out thanks to a four-decade track record and substantial profits.

Founded in 1979, Quality Gold offers more than 165,000 jewelry and gift products with same-day shipping and serves more than 15,000 retailers. The company uses a technology platform that encompasses sourcing, distribution, logistics and drop shipping capabilities. CEO Michael Langhammer and COO Jason Langhammer will lead the company upon the completion of the deal.

“We are thrilled to partner with Dave, Andy and the rest of the best-in-class team at Tastemaker, who are seasoned operators and directors of listed companies, as we become a publicly traded company,” said Michael Langhammer. “With the overwhelming support of our loyal and expansive customer base, Quality Gold has built a premier distribution business with a proven track record of success spanning more than four decades. With the resources provided through the transaction and those that will be available to us as a public company, we will be able to continue to build out our product offerings, deepen our retailer relationships, and further fuel our robust acquisition strategy as the highly fragmented jewelry industry naturally consolidates.”

“We are excited to take this major step forward in becoming a publicly traded company,” said Jason Langhammer. “Our decision to go public is intended to supercharge Quality’s Gold’s growth as the premier jewelry logistics and distribution provider. We have built a business that is well diversified across products, suppliers and customers, has proven to be incredibly stable, and is poised for strong future growth. We look forward to propelling our profitable business to new heights in the public markets.”

One reason for the deal is to create an M&A platform capable of cash and stock deals. Quality Gold has executed a dozen deals in the last decade to help drive expansion.

The merger has no minimum cash condition and is expected to close in early 2023.


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