Chinese retailer and manufacturer Chow Tai Fook is buying all the assets of diamond brand Hearts On Fire for $150 million in cash.
The company will be run as a standalone division under current management, a statement said, though there are plans to introduce the brand into Chow Tai Fook’s retail network in Hong Kong, China, Macau, and other Asian markets.
Hearts On Fire had audited net sales of $99.3 million and $104.8 million for 2012 and 2013, respectively, said Chow Tai Fook, which expects it to make an “immediate positive contribution” to the group. Approximately 75 percent of Hearts On Fire’s jewelry sales in 2013 were priced between $1,000 and $10,000, with most of the remaining sales were priced above $10,000.
Procurement of product will be handled by Chow Tai Fook, it said.
The deal’s closing is subject to regulatory and other requirements. No shareholder approval is required.