Chow Tai Fook, the world’s largest pure-play jeweller currently worth around US$15 billion, is buying Hearts on Fire for US$150 million.
Announcing the acquisition, Chow Tai Fook chairman Dr Henry Cheng said the proposed purchase “is a strategic move to complement our product portfolio with an exclusive premium diamond jewellery line and to raise our profile as a world-class diamond expert in the jewellery industry”.
He said that when the acquisition is completed Hearts on Fire will run as a stand-alone business within the Group under the continued leadership of CEO and chairman, Glenn Rothman, but the brand’s products will also be introduced into Chow Tai Fook’s retail outlets in Hong Kong, Macau and Mainland China
Chow Tai Fook managing director Kent Wong added that 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 is a best-selling luxury diamond brand with strong consumer awareness, and its product offerings are ideal additions to our existing portfolio,” he said.
“Given its proven track record not only in the western markets but also in Taiwan, the Group is confident that the Hearts On Fire products will be well received in our major markets … where diamond jewellery is increasingly popular.”
Meanwhile Rothman said that the acquisition will bring powerful financial resources, high-tech manufacturing capacity, and Chow Tai Fook’s innovative culture of creative talent to Hearts on Fire.
“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,” he said. “This is an unprecedented opportunity to grow the Hearts On Fire brand and reach millions of new customers.”
Currently celebrating its 85th anniversary, Chow Tai Fook Jewellery was listed on the Main Board of The Stock Exchange of Hong Kong in December 2011 and has since become the world’s “largest pure-play jeweller by market capitalisation”. The manufacturer of “mass luxury and high-end luxury jewellery” has over 2000 points of sale in Greater China, Singapore and Malaysia and “a growing presence in e-commerce”.
Founded in 1996 by Glenn and Susan Rothman in the US, Hearts on Fire is “a multi-channel manufacturer, marketer and designer of luxury branded diamonds and diamond jewellery”. The brand is sold in over 500 retail outlets in 31 countries, with the US being its largest market.