Pandora Acquires Gulf Distribution Rights

(IDEX Online) – Jewelry manufacturer and retailer Pandora has acquired Pan ME A/S, which held the distribution rights to Pandora jewelry in the United Arab Emirates (UAE), Bahrain, Qatar and Oman. The agreement is subject to certain conditions to be fulfilled.

The acquisition gives Pandora the opportunity to enter the Middle East markets directly and to add to its retail chain 10 Pandora Concept stores located in the UAE, which will be operated by Pandora, as well as three distributor stores in Bahrain, Qatar and Oman. Pan ME A/S generated revenue of around $16.6 million in 2013.

Pandora intends to establish Dubai as the future hub for the company's activities in the Middle East and North Africa.

Allan Leighton, CEO of Pandora, said: "Pandora jewelry has been available in the Middle East since 2010 and the agreement is in line with our strategy to expand geographically as well as maintaining control over our brand."

Peter Mark, President of Pandora Central Eastern Europe and Middle East, said: "With the agreement, we get a stronger platform the Middle East, a region which we believe holds great potential for Pandora, and we look forward to welcoming a strong UAE based organization into the company."

Pandora will pay about $20 million for the acquisition, which the firm said will have no impact on its outlook for 2014.

Founded in 1982 and headquartered in Copenhagen, Pandora employs over 8,500 people worldwide, of whom 5,900 are located in Gemopolis, Thailand, where the company manufactures its jewelry.

Pandora's total revenue in 2013 was approximately $1.65 billion.