(June 18, ’14, 3:24 Danielle Max)
(IDEX Online News) – Leading Chinese jewelry retailer Chow Tai Fook has announced plans to buy Hearts On Fire for a cash payment of $150 million. Following the purchase, Hearts On Fire’s operations will be run as a standalone business by its existing management.
Chow Tai Fook said the Hearts On Fire brand and products were complementary to its existing brands and products and that the acquisition is in line with its strategies to optimize its product mix as well as its efforts to promote higher value products and to encourage repeat customer purchases.
The Hearts On Fire brand will continue to be sold via its existing sales network. In addition, it will also be sold through Chow Tai Fook’s distribution network in Greater China through “shop-in-shop” and “counter-in-shop” strategies, which it intends to implement within six months of completing the purchase.
Hearts On Fire was established in 1996 by Glenn and Susan Rothman. The company had net sales of about $99.3 million last year and $104 million in 2012.