Avon buys Silpada Designs
This article was originally published in The Rose Sheet
Executive Summary
World's preeminent direct seller will pay $650 mil. for assets of "largest and fastest-growing" direct seller of sterling silver jewelry, with operations in the U.S., U.K. and Canada, according to July 12 release. Avon "expects Silpada to generate incremental growth by reaching new consumers and sales representatives with a higher-priced jewelry brand." CEO Andrea Jung has said firm will continue investing in direct channel to drive sustainable growth (1"The Rose Sheet" Nov. 3, 2008; Sales & Earnings In Brief). Earlier this year, Avon acquired Liz Earle Beauty Company, a U.K.-based skin-care marketer, to "broaden" Avon's leadership in anti-aging (2"The Rose Sheet" Mar. 29, 2010). Founded in 1997, Silpada has annual revenues of $230 million and employs 32,000 independent sales representatives. While Avon sells person-to-person, Silpada focuses on party-plan selling. Completion of the transaction is expected in Avon's 2010 third quarter