Quality Gold has signed an agreement to acquire family-owned wholesale jewelry distributor Herco for an undisclosed sum.
The deal is expected to be completed by mid-February, Quality Gold, a specialty logistics and jewelry distributor based in Fairfield, Ohio, said Thursday.
Established in 1979 by the Itelman family in San Francisco, California, Herco distributes 14- and 18-karat gold as well as platinum jewels to retailers throughout the US. It generated more than $25 million in revenue in 2022, the purchaser noted.
Quality Gold, also established in 1979, serves more than 15,000 retailers across the United States, its territories and Canada.
“This acquisition accelerates our growth, particularly within the 18-karat and platinum segments,” Quality Gold chief operating officer Jason Langhammer said in a statement. “It is a smart and strong addition for us.”
At the same time, Herco founder Reuven Itelman announced his retirement.
“I knew I wanted a buyer that would keep the Herco name alive,” Itelman added. “In speaking with and getting to know [Quality Gold cofounder and CEO] Michael Langhammer, I have complete confidence that the long-lasting Herco reputation that has been important to me is now in good hands.”
The acquisition of Herco complements Quality Gold’s recent merger and acquisition activity. On October 20, Quality Gold entered into a “business combination” agreement with Tastemaker Acquisition Corp., a publicly traded special-purpose acquisition company (SPAC), that will result in Quality Gold becoming a public company. The transaction is expected to close in the second quarter of 2023, following shareholder approval.
Image: Jewelry from the Herco website. (Herco)