Avon to Acquire Silpada Designs
Avon Products Inc. announces that it has agreed to purchase all of the assets of Silpada Designs Inc., a fast-growing direct seller of sterling silver jewelry with operations in the United States, Canada and the United Kingdom. Completion of the transaction is subject to customary closing conditions, including required regulatory approvals. The transaction is expected to close in the third quarter of 2010.
Avon said that the planned acquisition is consistent with its previously stated strategy to explore acquisition opportunities that complement its core beauty and direct selling business. In line with this, Avon said that it expects Silpada to generate incremental growth by reaching new consumers and sales representatives with a higher-priced jewelry brand. The company added that Silpada will continue to operate as a standalone business, and that its existing 32,000 independent sales representatives will be the exclusive sellers of its products through its party-plan direct selling model.
Avon also said that Silpada Co-founders Bonnie Kelly and Teresa Walsh, Chief Executive Officer and Co-founder Jerry Kelly, and the entire Silpada management team will continue to lead the company from their headquarters in Lenexa, Kan. Jerry Kelly, Silpada's chief executive officer, will report to Chuck Cramb, Avon's vice chairman and chief finance and strategy officer, and Silpada's financial results will be consolidated with those of Avon's North America commercial business unit. As part of the transaction, Avon will acquire the company's headquarters and warehouse facility in Lenexa.
Avon said that the planned acquisition is consistent with its previously stated strategy to explore acquisition opportunities that complement its core beauty and direct selling business. In line with this, Avon said that it expects Silpada to generate incremental growth by reaching new consumers and sales representatives with a higher-priced jewelry brand. The company added that Silpada will continue to operate as a standalone business, and that its existing 32,000 independent sales representatives will be the exclusive sellers of its products through its party-plan direct selling model.
Avon also said that Silpada Co-founders Bonnie Kelly and Teresa Walsh, Chief Executive Officer and Co-founder Jerry Kelly, and the entire Silpada management team will continue to lead the company from their headquarters in Lenexa, Kan. Jerry Kelly, Silpada's chief executive officer, will report to Chuck Cramb, Avon's vice chairman and chief finance and strategy officer, and Silpada's financial results will be consolidated with those of Avon's North America commercial business unit. As part of the transaction, Avon will acquire the company's headquarters and warehouse facility in Lenexa.
