(IDEX Online News) – Global jewelry retailer Pandora has signed an agreement with City Time, S.L. to acquire City Time do Brazil Comércio e Importação Ltda. in a cash deal for the distribution rights to Pandora jewelry in Brazil.

 

The acquisition will give Pandora the opportunity to enter the Brazilian market directly and to add to its nine-strong retail chain Pandora Concept stores - five in Sao Paulo, two in Rio de Janeiro, one in Brasilia and one in Curitiba, as well as an e-commerce site.

 

City Time Brazil generated revenue of almost $6.5 million in 2012 and $8.2 million in the first seven months of 2013. Pandora jewelry has been sold in Brazil since 2009.

 

Pandora CEO Allan Leighton said the agreement gives the company "a stronger presence in a country which we believe holds great potential". He said that City Time has established a presence for Pandora in Brazil and that the agreement was in line with the firm's strategy of expanding geographically as well as maintaining control over the brand.

 

Under the terms of the agreement, Pandora will pay a one-time, undisclosed amount to City Time for acquiring City Time Brazil. The cash payment, less the store-inventory and net working capital, does not exceed City Time Brazil's revenue for the first seven months of 2013. Pandora will not be obliged to any future payments to City Time related to the transaction.

 

City Time, located in Spain, has been a Pandora distribution partner since 2005. Following the agreement, City Time will continue to be the distributor of Pandora jewelry in Spain and Israel.

 

The agreement will not have any impact on Pandora's outlook for 2013 as communicated to the market in connection with the second quarter interim report on August 13.