OroAmerica Bids $43.2 Million for Rival Gold Jewelry Firm

OroAmerica Inc., the world’s No. 1 maker of gold jewelry, said it offered to buy rival Michael Anthony Jewelers Inc. for $43.2 million, or $6 a share in cash.

The offer for the No. 2 maker of gold jewelry represents a premium of 71% over Michael Anthony’s closing share price of $3.50 on Friday.

Mount Vernon, N.Y.-based Michael Anthony had about 7.2 million common shares outstanding as of Oct. 30.

Michael Anthony shares rose $1.31 to close at $4.81, a 52-week high, on the American Stock Exchange. OroAmerica shares rose 25 cents to close at $9.75 on Nasdaq.

Burbank-based OroAmerica said it expects the transaction “to close in a timely manner.”

OroAmerica last year bought two closely held rival gold retailers for undisclosed prices.

Its bid comes about two years after Michael Anthony said it ended preliminary talks on acquiring OroAmerica for $7.50 a share in cash and stock.

OroAmerica’s net sales for the fiscal third quarter ended Oct. 30 rose to $54.6 million from $46.4 million in the year-earlier period. Michael Anthony sales rose to $43.7 million in the quarter from $41.7 million a year earlier.