The Israeli Diamond Industry:
Cosmetics retail giant Avon Products Inc is delving into the jewelry business. According to National Jeweler, Avon will purchase all assets of Silpada Designs, a sterling silver jewelry home-party company.
Under the terms of the agreement, Avon is expected to acquire the assets of Silpada for an initial payment of approximately $650 million.
Silpada Designs, which operates jewelry businesses in the United States, Canada and the United Kingdom, offers a range of approximately 450 sterling silver jewelry products at higher price points than Avon’s current core jewelry offerings.
According to an Avon press release, Silpada boasts annual revenues of approximately $230 million and generates operating margins that are significantly higher than Avon’s.
Avon said in the release that the planned acquisition is consistent with its “strategy to explore acquisition opportunities that complement its core beauty and direct selling business.”
Logo from Avon