Chow Tai Fook acquires Hearts on Fire in conditional agreement
Chow Tai Fook Jewellery group has entered into a conditional acquisition agreement which will see it take over the entire stake of the Hearts on Fire jewellery brand.
The deal values Hearts on Fire at $150m (£88.18m) on a cash-free and debt-free basis.
The acquisition is a strategic move to complement Chow Tai Fook’s product portfolio and to raise its profile as a diamond expert in the jewellery industry.
Hearts on Fire will continue to run as a standalone business within the group under the continued leadership of CEO and chairman, Glenn Rothman, and the Hearts on Fire senior management team. With minimal operational overlap, Chow Fai Took expects a “smooth integration in a short time”.
Hearts on Fire’s products are expected to be introduced to the Honk Kong, Macau and mainland China markets within six months upon completion of the proposed acquisition.
Kent Wong, managing director of Chow Tai Fook, said: “Hearts on Fire is a best-selling luxury diamond brand with strong consumer awareness, and its product offerings are ideal additions to our existing portfolio.
“The acquisition is in line with the Group’s strategy to optimise product mix and promote higher value products to match the spending profiles of consumers.”
Hearts on Fire was founded in 1996 and has a global presence at more than 500 locations in 31 countries, with the US being its largest market.
Glenn Rothman, chairman and CEO of Hearts on Fire, said: “Chow Fai Took brings to the Hearts on Fire retail distribution channel powerful financial resources, high-tech manufacturing capacity, and their innovative culture of creative talent.
“These ‘best-in industry’ resources will provide Hearts on Fire the support and opportunity to expand exponentially, as we enter new markets, leveraging Chow Tai Fook’s leadership in the jewellery industry and its extensive retail network in greater China.
“This is an unprecedented opportunity to grow the Hearts on Fire brand and reach millions of new customers.”
