COMPANY ANNOUNCEMENT No. 110
PANDORA announces that the Company, as of 30 August 2013, has entered into a Stock Purchase Agreement (Agreement) with City Time, S.L. (City Time) to acquire City Time do Brazil Comércio e Importação Ltda. (City Time Brazil), including the distribution rights to PANDORA jewellery in Brazil. The Agreement is subject to certain conditions to be fulfilled, and is an all-cash transaction.
The acquisition will grant PANDORA the opportunity to enter the Brazilian market directly and to add to its retail chain nine 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 EUR 4.9 million (approx. DKK 35 million) in 2012 and EUR 6.2 million (approx. DKK 46 million) in the first seven months of 2013. PANDORA jewellery has been available in Brazil since 2009.
Allan Leighton, CEO at PANDORA, said: "With the Agreement, we get a stronger presence in a country which we believe holds great potential for PANDORA. City Time has done a great job in establishing a presence for PANDORA in Brazil and we look forward to welcoming a strong, local Brazilian organisation into PANDORA. The agreement is in line with our strategy to expand geographically as well as maintaining the control over our 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 (EUR 6.2 million). PANDORA will not be obliged to any future payments to City Time related to the transaction.
City Time, which is located in Spain, has been a valuable distribution partner to PANDORA since 2005. Following the Agreement, City Time will continue to be the distributor of PANDORA jewellery in Spain and Israel.
FINANCIAL GUIDANCE
The content of this release will have no impact on PANDORA's outlook for 2013, as latest communicated to the market in in connection with the second quarter interim report on 13 August 2013.
ABOUT PANDORA
PANDORA designs, manufactures and markets hand-finished and modern jewellery made from genuine materials at affordable prices. PANDORA jewellery is sold in more than 70 countries on six continents through approximately 10,300 points of sale, including approximately 950 Concept stores.
Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs over 6,900 people worldwide of whom 4,900 are located in Gemopolis, Thailand, where the company manufactures its jewellery. PANDORA is publicly listed on the NASDAQ OMX Copenhagen stock exchange in Denmark. In 2012, PANDORA's total revenue was DKK 6.7 billion (approximately EUR 900 million). For more information, please visit www.pandoragroup.com.
CONTACT
For further queries, please contact:
Morten Eismark
VP Group Investor Relations
Phone +45 3673 8213
Mobile +45 3045 6719
Magnus Thorstholm Jensen
Investor Relations Officer
Phone +45 4323 17639
Mobile +45 3050 4402