Hong Kong-based Chow Tai Fook Jewellery Group Ltd. said Wednesday it plans to buy Hearts on Fire Co. LLC for $150 million.
Hearts on Fire, founded in 1996 by Glenn and Susan Rothman, offers bridal and fashion jewelry using what the company terms “The World’s Most Perfectly Cut Diamond,” Chow Tai Fook said.
“The proposed acquisition is a strategic move to complement our product portfolio and to raise our profile as a world-class diamond expert in the jewelry industry,” said chairman Henry Cheng.
According to the acquisition agreement, Hearts on Fire will be run as a stand-alone business within Chai Tai Fook, led by current ceo and chairman Glenn Rothman. Rothman cited “power financial resources and high-tech manufacturing capacity” as top opportunities for the brand under the new deal. In addition to its existing sales networks, Hearts on Fire products are expected to enter Hong Kong, Macau and Mainland China within six months. The brand is sold in 31 countries, and has 10 stand-alone stores.
Hearts on Fire reported audited net sales of about $99.3 million and $104.8 million for the financial years ended Dec. 31, 2012 and Dec. 31, 2013, respectively, Chow Tai Fook said.