(FAIRFIELD, Ohio) – Quality Gold, Inc. and certain of its affiliates and subsidiaries, a leading vertically integrated specialty logistics and jewelry distributor that has entered into a business combination agreement with Tastemaker Acquisition Corp., announced it has signed a definitive agreement to acquire HERCO Jewelry Company, a leading family-owned wholesale jewelry company specializing in higher-end 14K, 18K, and platinum designs. The acquisition is expected to be completed by mid-February.
Established in 1979 by the Itelman family in California, HERCO has been successfully distributing jewelry offerings through its large, diverse client base across the United States for more than 40 years. In its fiscal year ended December 31, 2022, HERCO generated more than $25 million in revenues (unaudited) demonstrating its leadership position and ability to deliver a superior product portfolio, with a comprehensive range of prices servicing a wide range of end-consumers through luxury independent retail establishments.
“We are thrilled to welcome HERCO into the Quality Gold family,” said Quality Gold’s co-founder and Chief Executive Officer, Michael Langhammer. “Both Quality Gold and HERCO have demonstrated a track record of success as family-owned businesses spanning several decades, and we believe HERCO represents an ideal acquisition given its strong product offerings and distribution capabilities. The business Reuven Itelman and his family created has a loyal retailer base, and we look forward to having the opportunity to leverage their industry expertise, product portfolio, and customer network as we continue to deliver value to our e-tail and retail partners across the world.”
“This acquisition accelerates our growth, particularly within the 18K and platinum segments,” said Jason Langhammer, Chief Operating Officer of Quality Gold. “It is a smart and strong addition for us. We expect as a result of this transaction, there is the potential for significant synergies that will make HERCO, and by extension Quality Gold, stronger companies. We look forward to building upon their success and continuing to offer the HERCO brand to retailers.”
“As I considered retirement and what my family has built and the legacy of the HERCO name in the industry, I knew I wanted a buyer that would keep the HERCO name alive,” said Reuven Itelman, President of HERCO. “I am incredibly grateful to the entire jewelry community that my family and I have had the pleasure to be part of for 43 years. Over the years, I’ve developed relationships with manufacturers and retailers worldwide. There is nothing more beautiful than the jewelry business. It is where art, engineering, and design come together. It has given me great fulfillment in my life, and I’ve learned so much from others who care deeply about this industry.”
Itelman continued, “So in speaking with and getting to know Michael Langhammer, I have complete confidence that the long-lasting HERCO reputation that has been important to me is now in good hands with Quality Gold. Quality Gold has a strong relationship with independent jewelers and a plan for HERCO to live on.”
The acquisition of HERCO expands on Quality Gold’s successful M&A activity over recent years as it continues to acquire top-quality businesses in the fragmented jewelry industry and adds additional assets in the higher-end jewelry market to its portfolio. JD Merit represented HERCO as their exclusive financial advisor on the transaction. Terms of the transaction have not been disclosed.