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By
Reuters
Published
Jul 3, 2013
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Avon sells jewellery unit for a fraction of original price

By
Reuters
Published
Jul 3, 2013

Silpada Designs

Avon Products Inc has sold its Silpada Designs jewellery business for $85 million, three years after buying it for $650 million, to focus on its core beauty products business.

The decision to sell to Rhinestone Holdings Inc, a newly formed entity owned by the founders of Silpada, was made because of the time and investment required to return the business to historical levels of profitability, Avon said. ()

"Divesting Silpada is an important step in our plan and will enable us to focus our resources on the core Avon business," Avon Chief Executive Sheri McCoy said.

Avon expects to record a non-cash pretax charge of about $80 million in the second quarter of 2013, but it will receive up to $15 million back from Silpada if the jewellery business achieves specific earnings targets over two years.

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