White Orchid bracelet, silver charms and stud earrings from Pandora's Summer 2017 Collection
Pandora has entered into an agreement to acquire City Time S.L., which owns the distribution rights to the brand's jewellery in Spain, Gibraltar and Andorra.
The acquisition follows Pandora's takeover of the distribution in Belgium and South Africa earlier in the year and is consistent with the company's strategic intent to increase control of the Pandora brand and strengthen its owned-and-operated retail footprint.
"By taking over the distribution of Pandora jewellery in Spain, we get direct access to one of the larger jewellery 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 realise the full potential of our brand in this promising market," says Anders Colding Friis, Pandora's CEO.
Pandora will pay the owners of City Time a total of around EUR 110 million (around US$130 million) for 100 percent of the share capital in City Time. The transaction is expected to be finalised in the fourth quarter of the year.
Blue Cosmic Stars silver charm from Pandora's Summer 2017 Collection
With the acquisition, Pandora will gain full control of the distribution rights to Pandora jewellery in Spain, Gibraltar and Andorra. It also gets a fully operational set-up in Spain, including a regional office and distribution centre in Madrid and around 500 employees.
Aside from granting Pandora the opportunity to enter Spain directly, the acquisition will add 51 Pandora-owned concept stores in Spain to the brand’s current retail chain. Pandora will also take over distribution to 15 franchisee concept stores and around 500 other points of sale 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 milion (around US$111 million).
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