Pandora acquires distribution rights in Brazil
Copenhagen, Denmark--Danish bead company Pandora has acquired the distribution rights for its jewelry in Brazil, meaning it will be able to enter the market directly and open more concept stores in the South American nation.
Pandora announced Friday that it has entered into a stock purchase agreement to acquire Brazil ComÉrcio e ImportaçÃo Ltda. (City Time Brazil), the current distributor of Pandora jewelry in the country, from City Time, S.L. The agreement is subject to certain conditions and is an all-cash transaction.
Pandora jewelry has been available in Brazil since 2009 and the company has a total of nine concept stores there: five in Sao Paulo, two in Rio de Janerio, one in Brasilia and one in Curitiba, as well as an e-commerce site. City Time Brazil’s revenues were approximately $6.5 million in 2012 and $8.2 million in the first seven months of 2013.
Under the terms of the agreement, Pandora will pay a one-time amount to City Time. Though the exact value of the transaction was not disclosed, Pandora said the cash payment, less the store inventory and net working capital, is not more than $8.2 million.
City Time has been a Pandora distribution partner since 2005 and will continue to distribute the company’s jewelry in Spain and Israel.
“With the agreement, we get a stronger presence in the country, which we believe holds great potential for Pandora,” CEO Allan Leighton said. “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 organization into Pandora. The agreement is line with our strategy to expand geographically as well as maintain the control over our brand.”
Pandora is the second industry player in recent weeks to remark upon Brazil’s potential for future jewelry demand.
The International Gemological Institute (IGI) laboratory announced that it is now offering grading reports in Spanish and English as well as Portuguese and English. Portuguese is the official language of Brazil.
In the news release announcing the reports, the IGI said that despite the recent economic slowdown in Brazil, analysts expect the country’s economy to pick up in coming years.