Summary Box: Avon will acquire jewelry seller Silpada for at least $650M in cash
By APMonday, July 12, 2010
Summary Box: Avon buys Silpada for $650 million
THE DEAL: Direct beauty-products seller Avon said it will buy jewelry maker Silpada Designs, based in Lenexa, Kan., for at least $650 million.
THE REASON: Avon said the deal allows it to enter the higher-priced jewelry market and add new customers and sales representatives. Silpada will continue to operate as a standalone business with its current 32,000 salespeople.
THE OUTLOOK: Avon, based in New York, expects the deal will help net income by 3 cents to 5 cents per share in 2011. The deal is expected to close in the third quarter.
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