Quality Gold has announced plans to acquire Herco, the San Francisco-based jewellery wholesaler founded in 1979 and specialising in high-end 14 and 18 carat gold and platinum jewellery.
The jewellery wholesaler and distributor announced late Thursday that it is buying Herco Jewelry Company, the San Francisco-based wholesaler founded by the Itelman family in 1979.
Herco president Reuven Itelman is retiring and said he wanted to find a buyer that would keep the Herco name alive.
He believes he has found that in Quality Gold.
“In speaking with and getting to know [Quality Gold co-founder and CEO] Michael Langhammer, I have complete confidence that the long-standing Herco reputation that has been so important to me is now in good hands with Quality Gold. Quality Gold has a strong relationship with independent jewellers and a plan for Herco to live on,” said Itelman.
For Quality Gold, the acquisition of Herco will allow it to distribute more 18-carat gold and platinum jewellery and tap into Herco’s network of independent luxury retailers, while continuing to offer jewellery under the Herco brand.
Herco generated more than $25 million in revenue (unaudited) in its most recent fiscal year, which ended on 31 December 2022.
Jason Langhammer, chief operating officer of Quality Gold, called it a “smart and strong addition” for the company.
“As a result of this transaction, we anticipate the potential for significant synergies that will make Herco, and by extension Quality Gold, stronger companies. We look forward to building on their success and continuing to offer the Herco brand to retailers,” he said.Terms of the transaction were not disclosed.
Quality Gold will begin fulfilling Herco orders in mid to late February and will honour all current dealer memos, the company confirmed.
Over time, Herco’s operations will move from San Francisco to Quality Gold’s headquarters in Fairfield, Ohio, a suburb of Cincinnati. Quality Gold said it has no information at this time on whether it will retain any of Herco’s employees.
The transaction is expected to close by mid-February.
“I am incredibly grateful to the entire jewellery community that my family and I have had the pleasure of being a part of for 43 years,” said Itelman.
“Over the years, I’ve developed relationships with manufacturers and retailers around the world. There is nothing more beautiful than the jewellery business. It is where art, technology and design come together. It has given me great fulfilment in my life, and I’ve learned so much from others who care deeply about this industry.
The pending purchase of Herco is the latest in a series of acquisitions for Quality Gold, which most recently purchased IBGoodman Manufacturing Co.
Last autumn, Quality Gold announced plans to go public through a merger with special purpose acquisition company (SPAC) Tastemaker Acquisition Corp.
The deal is expected to close sometime in the first quarter of 2023.
When it does, Quality Gold will become Quality Gold Holdings Inc. and trade on the Nasdaq under the ticker symbol “QGLD”.
