Chinese jewelry leader Chow Tai Fook announced a deal to buy the American luxury jewelry brand Hearts On Fire for $ 150 million. After the transaction, the Heart on Fire brand will be sold at Chow Tai Fook's retail chain in China, with over 2,000 outlets more than 470 cities of China.
"We welcome Hearts On Fire as a valuable partner who shares our vision of high quality and innovative products. This transaction is a strategic step and will allow us to complement our portfolio with an exclusive line of premium diamond products and enhance our position in the jewelry industry as a world-class diamond expert, "said Chow Tai Fook Chairman Henry Cheng.
Hearts on Fire founder and CEO Glenn Rothman noted that "Chow Tai Fook gives the diamond brand new channels of retail sales, powerful financial resources, high-tech production facilities, its innovative culture and creative talent." He expressed confidence that the leadership and wide retail network of the Chinese retailer in China will give Hearts on Fire the opportunity to "increase sales in a geometric progression."
"This is an unprecedented opportunity to develop the Hearts On Fire brand and increase the audience to millions of new customers," Rothman said.
Hearts on Fire was founded in 1996, last year its sales exceeded $ 99 million.
Chow Tai Fook is the world's largest jewelry retailer by market capitalization. The group reported that in the last financial year its profit increased by 31% and reached $ 970 million.