Avon divests jewellery business

Published: 3-Jul-2013
Finance Retail

The company has sold its Silpada Designs jewellery business to Rhinestone Holdings


US direct seller Avon has sold its Silpada Designs jewellery business to Rhinestone Holdings for $85m in cash. The transaction is expected to close this month.

"Stabilising Avon's US business is a top priority in our turnaround efforts," said Avon CEO Sheri McCoy. "Divesting Silpada is an important step in our plan and will enable us to focus our resources on the core Avon business."

In February, Avon first revealed that that it was “reviewing strategic alternatives” for the Silpada business. In line with this, the company made the move to divest Silpada due to the timeline and investment required to return the business to its historical levels of profitability.

The company expects to record a non-cash charge of approximately $80m pre-tax in the second quarter of 2013. Proceeds from the sale are expected to be used for general corporate purposes, including the repayment of outstanding company debt.

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