Avon buys Silpada for $650M
Posted: Monday, July 12, 2010 12:24 pm
By: The Associated Press
The Messenger 07.12.10
NEW YORK (AP) — Avon Products Inc., a direct seller of beauty products, agreed to buy Silpada Designs for at least $650 million in an effort to expand its jewelry business.
Silpada, headquartered in Lenexa, Kan., is a direct seller of sterling silver jewelry in the U.S., Canada and the U.K.
Avon said the company will continue to operate as a stand-alone business with its existing 32,000 independent sales representatives.
Silpada co-founders Bon-nie Kelly and Teresa Walsh, CEO and co-founder Jerry Kelly and the entire management team will stay with the company. Avon could make an additional payment in 2015 if some earnings growth targets are met. It expects the deal will help net income by 3 cents to 5 cents per share in 2011.
Avon, based in New York, says the acquisition will help it reach new customers and sales representatives. Silpada makes more expensive jewelry than Avon currently sells.