Press release - 10 March 2008
Axcel acquires stake in jewelry company Pandora Axcel has acquired a 60% stake in Pandora, a family- and employee-owned Danish jewelry manufacturer with annual revenues of about DKK 1,1 bn. The goal is to strengthen and expand the company’s international position and implement a long term succession. Axcel has agreed with the owners of jewelry company Pandora to buy 60% of the shares in the company. Previously, ownership in the company was held by the two founders, Per and Winnie Enevoldsen, their son Christian and a number of senior staff. The current owners will co-invest along with Axcel and own 40% of the new company. Pandora’s core product is bracelets with charms in precious metals and gemstones which are available in numerous combinations. New charms are designed regularly, enabling customers to put together their own personal and unique pieces of jewelry. The bracelets were launched in 2000 and became the booster for Pandora’s huge success, enabling the company to double its revenue each year since. Denmark’s best kept secret The company designs and develops its products in Denmark and manufactures them in Thailand, where about 1000 specially trained employees finish the products by hand. The Pandora jewelry collection, which in addition to bracelets comprises necklaces, earrings, finger rings and other items, is sold direct from the company or through distributors to some 7000 jewelry and gift shops in 20 countries. Pandora has won several Gazelle company awards and was named the 2007 Entrepreneur of the Year in Denmark for its impressive results and unique business concept. “Pandora is Denmark’s best kept secret,” says Christian Frigast, Managing Partner of Axcel, who continues: “The Pandora team has had remarkable success in exploiting market opportunities over the past seven years. The result is a financially very successful business in terms of both earnings and growth, and the company generates more than 90% of its revenue outside Denmark. The combination of a strong brand, exclusive quality, a high degree of hand-crafting and an extremely efficient supply chain makes the Pandora business concept unique, and we look forward to working together with the family and the management to further develop the business.” International expansion and larger production facilities Pandora’s development plans include international expansion and growing the company’s presence in current markets as well as expanding production in Thailand. In the USA and Canada, sales will be managed by wholly owned subsidiaries, which will bring consolidated sales to roughly DKK 1,1 bn. “Pandora has grown to a size where we need to bring new owners and new skills on board. This also applies to the management level, because we need more professional resources if we are to further develop and exploit our company’s full potential. That is why we have decided to join forces with Axcel. We believe that they can provide the kind of management resources, industry know-how and retail experience we need,” says Per Enevoldsen, CEO, co-founder and part owner of Pandora. Per Enevoldsen intends to concentrate on developing Pandora’s operations in Thailand, which is why the company has initiated a search for a new CEO who can lead the efforts to implement Pandora’s plans for a global presence. New logo and branding strategy The change in ownership coincides with Pandora introducing a new logo, a modernised version of its trademark. At the same time, the company will be launching a new advertising campaign that will form part of its new branding strategy, which is labelled “Unforgettable Moments”. The new branding strategy is intended to create a single communications platform across all markets in order to strengthen the company’s global business brand.
For additional information, please contact: Christian Frigast, Managing Partner Axcel Tel.: +45 26 32 64 00 (mobile) e-mail: cf@axcel.dk
Per Enevoldsen, CEO Pandora Tel.: +66 89 500 1536 (mobile) e-mail: per@pandora.co.th
Pictures attached (high resolution jpg). Pictture text: “Axcel has acquired a 60%-stake in Pandora, a family-owned Danish jewelry manufacturer. Pandora has achieved impressive results and generates revenues of around DKK 1,1 bn thanks to its unique charms bracelet which is sold in 20 countries and worn by millions of women all over the world. Working with the original owners, Axcel plans to develop the business through international expansion�
Pandora charms-bracelet
About Pandora Pandora was founded in 1982 by goldsmith Per Enevoldsen and his then wife Winnie. The company’s roots go back to the 1950s, when Per Enevoldsen’s father, Algot Enevoldsen, designed and manufactured jewelry. Pandora designs, manufactures, markets and sells handmade jewelry all over the world. Launched in 2000 – and what truly boosted Pandora’s business development – the company’s core product is a bracelet in silver or gold with charms sold separately. The bracelet has a unique design that distributes the individual charms evenly around the wrist. The charms are all handmade with fine details, patterns and/or gemstones such as topaz, sapphire, amethyst or brilliant-cut diamonds, and they hook directly onto the bracelet. New charms are added to the assortment regularly. The current selection of about 500 different charms makes for countless personal combinations. Building on the success of the charm bracelet, the company has also launched a series of earrings based on the same basic concept. The Pandora range also includes a wide selection of necklaces, finger rings, earrings, and other items. The jewelry, like the charms, is fashioned from 14kt gold or sterling silver with brilliant-cut diamonds, gemstones and various coloured stones. Pandora has 35 employees at its Copenhagen headquarters. The company manufactures its products in Bangkok, Thailand, where it has about 1000 employees, and there are about 100 employees in its US and Canadian subsidiaries. In 2007, Pandora generated revenues of about DKK 1,1 bn in 20 countries. North America is the company’s largest market. www.pandora.dk
About Axcel Axcel is the largest private equity fund in Denmark and focuses on creating strong and valuable enterprises. Axcel was founded in 1994 and has a large number of Danish and international investors. Since its inception, Axcel has invested actively in Danish enterprises through three investment funds with a capital commitment totalling DKK 6.6 billion and has developed a significant and comprehensive network in Denmark and abroad through its many acquisitions outside Denmark. With 33 investments, Axcel is the fund which has made the most investments in medium-sized Danish enterprises. Axcel participates actively in the top management of the acquired enterprises. Axcel’s investments currently include 15 enterprises with combined revenues of approximately DKK 1,1 billion: • • • • • • •
•
Pandora (jewellery) IDEmøbler (home furnishings) Noa Noa (women’s and children’s fashionwear) Ball Group (women’s fashionwear) FM-Søkjær (single family houses) TCM Group (kitchens and bathrooms) Netcompany (IT consulting services) ESKO (software for the packing industry)
• • • • •
•
Ellipse (equipment for medical and cosmetic skin treatment) Junckers Industrier (wood flooring) Vital Petfood Group (pet food and accessories) Royal Copenhagen (porcelain) Georg Jensen (luxury goods) BB Electronics (electronics production)
To date, 18 of the enterprises Axcel has invested in have been further developed and sold: • • • • • • • • •
DDD (medical equipment) ICOPAL (roof solutions) Thygesen Textile Group (textiles) Kilroy Travels (youth travel agency) Bekaert Handling (roll and pallet containers) LSG (equipment for the laundry industry) LOGSTOR (pipe systems for district heating) Vest-Wood (doors) Kwintet (workwear and image wear)
For more information on Axcel, visit www.axcel.dk
• • • • • • • • •
Aalborg Industries (industrial boilers) NetTest (test equipment) Glud & Marstrand (metal packing) Rationel Vinduer (windows) GraphX (heatset rotation printers) Føvling (pinewood furniture) Tvilum-Scanbirk (DIY furniture) Monarflex (reinforced plastic products) Everton (bicycles)