Gold jewelry manufacturers OroAmerica Inc. and Aurafin LLC. announced today the companies will merge and OroAmerica will become a wholly-owned subsidiary of Aurafin, a privately held company. OroAmerica stockholders will receive $14 per share, a 46% premium over the April 24 closing price of $9.60. The merger is subject to approval by OroAmerica stockholders and government regulators and depends on Aurafin finalizing financing for the merger.
"The consolidation that is occurring in retail has created larger customers requiring stronger suppliers with greater focus and logistics expertise," says Aurafin CEO Michael Gusky. "Aurafin will benefit from the addition of OroAmerica's extensive manufacturing facilities and proprietary jewelry lines."
OroAmerica Chairman and CEO Guy Benhamou says, "OroAmerica's unique price-pointed products are a perfect compliment to Aurafin's fashion-oriented products, resulting in a full spectrum of products and price points." Benhamou will stay with the company after the merger as president of the OroAmerica subsidiary.
- by Julia M. Duncan