Two names in fine jewelry come together; Chow Tai Fook and Hearts On Fire.
Adrian Cheng, Executive Director of Chow Tai Fook, is an avid art-lover who leads the Group in branding, marketing and e-commerce. “In the jewellery world, it is not only about business, it is also an art that commands the highest standards of design and craftsmanship. We, at Chow Tai Fook, aspire to deliver both. I am excited about the joining of a like-minded global luxury diamond brand. Bringing together our strengths and resources, we will see a lot of possibilities,” he remarked.
“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. The exclusive premium brand boasts its proprietary cutting and polishing technology, master craftsmanship and design excellence and is highly acclaimed for producing The World’s Most Perfectly Cut Diamond®. The brand has a global presence at more than 500 locations in 31 countries, with U.S.A. being its largest market.
“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, including Hong Kong, Macau and Mainland China, where diamond jewellery is increasingly popular,” Kent Wong, Managing Director of Chow Tai Fook added.
“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. 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. This is an unprecedented opportunity to grow the Hearts On Fire brand and reach millions of new customers,” said Glenn Rothman.
While Chow Tai Fook will remain focused on its business in the Greater China region, Hearts On Fire will be run as a standalone business within the Group under the continued leadership of CEO and Chairman, Glenn Rothman, and the Hearts On Fire senior management team. In addition to its existing sales network, Hearts On Fire’s products are expected to be introduced to the Hong Kong, Macau and Mainland China markets through Chow Tai Fook’s extensive retail network employing the Hearts On Fire “shop-in-shop” and “counter-in-shop” models within six months upon completion of the proposed acquisition. With minimal operational overlap between Chow Tai Fook and Hearts On Fire, a smooth integration is expected within a relatively short time.
Chow Tai Fook Chairman Dr Henry Cheng said, “We welcome Hearts On Fire as our valuable partner that shares the same vision for high quality and innovative products. The proposed acquisition is a strategic move to complement our product portfolio with an exclusive premium diamond jewellery line and to raise our profile as world-class diamond expert in the jewellery industry.”
About the Acquisition
Chow Tai Fook Jewellery Group Limited (“Chow Tai Fook” or the “Company”; collectively with its subsidiaries, the “Group”; HKEx Stock Code: 1929), the world’s largest pure-play jeweller by market capitalisation with 85 years of heritage, and Hearts On Fire Company LLC (“Hearts On Fire”), a luxury branded diamond company offering premium bridal and fashion jewellery products, jointly have entered into a conditional acquisition agreement whereby Chow Tai Fook will acquire the entire stake of Hearts On Fire for a consideration of US$150 million (approximately HK$1,170 million) on a cash-free and debt-free basis. The proposed acquisition will be fully funded by Chow Tai Fook’s internal resources.
About Chow Tai Fook Jewellery Group
Chow Tai Fook Jewellery Group Limited, a leading jeweller in the Mainland of China, Hong Kong and Macau, was listed on the Main Board of The Stock Exchange of Hong Kong in December 2011 and has become the world’s largest pure-play jeweller by market capitalisation. Chow Tai Fook is now a constituent stock of the Hang Seng China 50 Index and the Hang Seng Mainland 100 Index. Its core business is manufacturing and selling of mass luxury and high-end luxury jewellery including gem-set products, gold products, and platinum and karat gold products.
The Group’s iconic brand “Chow Tai Fook” and long-standing history of over 85 years of operations represent key competitive advantages of its business. The Chow Tai Fook brand is recognised for its trustworthiness and authenticity, and renowned for its product design, quality and value.
The Group has an extensive retail network, with over 2,000 points of sale in more than 470 cities in Greater China, Singapore and Malaysia. It also has a growing presence in e-commerce. The Group’s vertically integrated business model provides an effective and tight control over the entire operation chain from raw material procurement, design, production, to marketing and sales through its extensive retail network. www.chowtaifook.com
About Hearts On Fire Company
Hearts On Fire was founded in 1996 by Glenn and Susan Rothman and is a leading global multi-channel manufacturer, marketer and designer of luxury branded diamonds and diamond jewellery, and one of the most widely recognised and best-selling luxury diamond jewellery brands in the world. Hearts On Fire created the category of luxury branded diamonds and maintains a leading market position in the luxury branded diamond segment, featuring its trademarked Hearts On Fire® round diamonds and its patented Dream® square cut diamonds. Hearts On Fire products are distinguished by their unique quality, superlative craftsmanship and compelling designs, which combine to create an unparalleled value for customers around the world. Hearts On Fire delivers its offering to a passionate and loyal customer base through its best-in-class, global independent retail partner network covering over 500 locations in 31 countries, 10 HOF stores globally, heartsonfire.com and authorized HOF retailer websites. For more information, please visit http://www.heartsonfire.com.