Jewelry manufacturer Alarama was recently purchased by The Richline Group, the new company controlled by famed billionaire investor Warren Buffett’s holding company Berkshire Hathaway.
Richline purchased Bel Oro and Aurafin in a transaction earlier this year.
Jeff Adwar will continue to head the Long Island City, N.Y.-based company. He will also continue to head ALA Castings and Overnight Mountings, which will run independently and are not part of this deal, he said.
“Alarama is our first diversification into the gemstone and wedding band category,” said Dennis Ulrich, CEO of Richline Group. “It brings us into a new field with a good company with good management.”
He said that, while many of the corporate functions under the Richline Group will be managed by Richline, sales and merchandising will remain with the individual companies.
“We value the people in the different areas, and want to let them do their job,” he said.
He said the company is still looking at other acquisitions, mostly in the finished jewelry and designer areas.
“The jewelry industry is still very fragmented,” he said. “There is an opportunity to consolidate further.”
Adwar would not comment on talk that Gitanjali, the Indian company that owns Samuels Jewelers, also bid for the company.
Berkshire Hathaway also controls three jewelry retailers: Borsheims, Helzberg’s Diamond Shops, and Ben Bridge. But Ulrich said that Richline will continue to have an “arms-length” relationship and deal with them “like any other customer.”