Cosmetics' direct sales giant has announced its intention to buy Silpada Designs, another leader in direct sales in U.S., Canada and U.K., specialist in silver jewellery. Cost of operation: 515 million Euros. Deal completion expected for end of 2010 third quarter.

Avon Cosmetics

According to Avon, this acquisition fits with its expansion strategy in the direct sales market. Silpada will retain autonomy in managing day-to-day business and the group’s 32,000 ambassadors. The management team, including co-founders Bonnie Kelly, Teresa Walsh, Jerry Kelly and the CEO will retain their job functions. Silvada’s CEO will from now on also report to Chuck Cramb, Vice-President and Financial Director at Avon.

In addition, Avon has expressed its commitment to make additional payments to shareholders of Silpada early in 2015 if the company achieves some of its profit objectives outlined. The total cost that the transaction could amount to has not been disclosed.

Founded in 1997, Silpada Design shows good performance, and an annual turnover estimated to average 182 million Euros. According to Avon, Silpada even generates operating margins "noticeably higher than those of Avon.”