The announcement coincided with its full-year results, with growth driven by its jewelry brands.
Chow Tai Fook to acquire Hearts on Fire for $150M
Chow Tai Fook Jewellery Group Ltd. announced Wednesday that it plans to buy Boston-based Hearts on Fire for $150 million, giving Hearts on Fire a foothold in the Chinese market and the Hong Kong-based retailer and manufacturer an exclusive, premium diamond brand.
Hong Kong--Chow Tai Fook Jewellery Group Ltd. announced Wednesday that it plans to buy Boston-based Hearts on Fire for $150 million, giving Hearts on Fire a foothold in the Chinese market and the Hong Kong-based retailer and manufacturer an exclusive, premium diamond brand.
Hearts on Fire will continue to operate as a standalone business within the group under the leadership of CEO Glenn Rothman, who founded the company with his wife Susan in 1996, and the rest of the Hearts on Fire senior management team.
Hearts on Fire, however, will be introduced into Chow Tai Fook’s stores in mainland China, Hong Kong and Macau, employing the brand’s shop-in-shop and counter-in-shop models. This is expected to take place within six months of the transaction’s closing.
Though Chow Tai Fook did not give an exact timeline for the closing of the deal, the company said that a “smooth integration is expected within a relatively short time” given the minimal overlap between the two companies’ operations.
“Chow Tai Fook brings to the Hearts on Fire retail distribution channel powerful financial resources, high-tech manufacturing capacity, and their innovative culture of creative talent,” Rothman said in a statement about the acquisition. “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 jewelry 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.”
Chow Tai Fook Chairman Henry Cheng said the acquisition of Hearts on Fire is a “strategic move to complement our product portfolio with an exclusive, premium diamond jewelry line and to raise our profile as world-class diamond expert in the jewelry industry.”
The acquisition is cash- and debt-free, funded entirely by Chow Tai Fook’s internal resources.
Based in Hong Kong, Chow Tai Fook is the world’s largest pure-play jeweler by market capitalization, with more than 2,000 points of sale in more than 470 cities in Greater China, Singapore and Malaysia. It both manufactures and sells mass-market as well as high-end jewelry. It has been in operation for more than 85 years.
Founded 18 years ago by the Rothmans, Hearts on Fire is sold in more than 500 locations in 31 countries, in 10 Hearts on Fire stores across the globe, online at HeartsonFire.com and on
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.