NOTES
Consolidated financial statements •95
SECTION 5: OTHER DISCLOSURES, CONTINUED
Acquisitions in 2013
Acquisition of the distribution inBrazil
On 24October 2013, PANDORA acquired 100% of the
share capital of CityTime doBrasil Comércio e Importação
Ltda. (the name has subsequently been changed to
PANDORA doBrasil Comércio e Importação Ltda.),
based in São Paulo, obtaining control of the company.
The company is a retail companywith eight stores and an
e-store operating in five cities inBrazil.
With the acquisition, PANDORA has strengthened its
presence in a countrywith great potential. A base inBrazil
will provide PANDORAwith the opportunity to directly
affect distribution inBrazil and other SouthAmerican
markets.
The above table summarises the considerationpaid for
CityTime doBrasil Comércio e Importação Ltda., and the
fair value of assets acquired and liabilities assumed at the
acquisitiondate.
The purchase pricewasDKK 40million, of whichDKK
2millionwas deferred.The deferred payment was due on1
January 2018, but the amount was paid in full in 2014.
Acquisition-related costs of DKK 1millionwere
recognised as administrative expenses in the consolidated
income statement for the year ended 31December 2013.
Assets and liabilities assumedmainly comprise
keymoney, property, plant and equipment related to
the acquired stores, inventories and accounts payable.
Themarket value of keymoney is calculated annually
by the centre operators and is deemed to have an
indefinite life.
Japan/
DKKmillion
Bluebell
Other intangible assets
29
Property, plant and equipment
3
Inventories
6
Assets acquired
38
Total identifiable net assets acquired
38
Goodwill arising from acquisition
17
Purchase consideration
55
Cashmovements on acquisition:
Earn-out
-55
Net cashflows on acquisition
-
BUSINESSCOMBINATIONS, CONTINUED
5.1
The goodwill of DKK 30million arising from the
acquisition is attributable to the expected synergies from
a strengthened presence and increased opportunities to
improve both the retail andwholesalemarkets in South
Americawhilemaintaining control of the PANDORA
brand. None of the goodwill recognised is deductible for
income tax purposes.
Other acquisitions in 2013
In 2013, PANDORA acquired concept stores that have
been accounted for as business combinations and are
also recognised in the line acquisition of subsidiaries and
activities.
Impact on the consolidated financial statements
The acquisitions have neither individually nor in
combination had any significant impact on theGroup’s
revenue or net profit. If the acquired companies had been
owned by theGroup from the beginning of the year, there
wouldhave beenno significant impact onGroup revenue
or Group net profit.
Acquisition after the reporting period
Strategic alliance in Japan
On 1 January 2015, PANDORA acquired assets related
to the distribution of PANDORA jewellery in Japan from
Bluebell in a business combination. In addition to the
distribution rights, assets includedbranded stores – one
concept store andnine shop-in-shops.The acquisitionwas
part of a strategic alliancewithBluebell in Japanwith the
intent to jointly distribute PANDORA jewellery in Japan.
