Pandora Acquiring Distribution Rights In Spain, Gibraltar And Andorra

(IDEX Online) – Jewelry giant Pandora is acquiring City Time S.L. which owns the distribution rights to Pandora jewelry in Spain, Gibraltar and Andorra.

The acquisition follows the takeover of the distribution in Belgium and South Africa earlier in the year and is in line with Pandora's strategic intent to increase control of the Pandora brand and strengthen the owned and operated retail footprint, the firm said.

"By taking over the distribution of Pandora jewelry in Spain, we get direct access to one of the larger jewelry markets in Europe. Our Spanish partner has done a tremendous job in establishing a strong store network in the country. The acquisition is in line with our strategic intent to take over distribution and enables us to gain full control of the network in Spain and realize the full potential of our brand in this promising market," said CEO Anders Colding Friis.

Pandora will pay City Time around EUR 110 million for 100 percent of the share capital in City Time. With the acquisition, Pandora will gain full control of the distribution rights to Pandora jewelry in Spain, Gibraltar and Andorra, as well as a fully operational set-up in Spain, including a regional office and distribution center in Madrid and around 500 employees. The agreement is subject to certain conditions to be fulfilled. The transaction is expected to be finalized during Q4 2017.

The acquisition will grant Pandora the opportunity to enter Spain directly. With the agreement, Pandora will add to its retail chain 51 Pandora owned concept stores in Spain. Furthermore, Pandora will take over distribution to 15 franchisee concept stores and around 500 other points of sales in Spain, Gibraltar and Andorra.

In 2016, City Time's revenue, consisting of retail sales in the acquired Pandora stores and sell-in to the existing wholesale network in the region, was approximately EUR 94 million.a