Avon Products has sold sterling silver jewelry home party company Silpada back to its original founders almost three years after purchasing it.
Rhinestone Holdings, the new company of former Silpada owners Jerry and Bonnie Kelly and Tom and Teresa Walsh, reacquired the home party company on June 30 for $85 million, according to a filing with the Securities and Exchange Commission, far less than the $650 million Avon originally paid for it in July 2010. Rhinestone Holdings also must pay $15 million if specific earnings targets are met within two years. Avon announced it was exploring options for the business in February.
Silpada has appointed Kelsey Perry and Ryane Delka, daughters of the Walsh and Kelly families respectively, to serve as copresidents. Tom Kelly will remain as Silpada’s CEO.
Silpada’s international corporate headquarters and distribution center will remain in Lenexa, Kan., and there are no plans to change the location of its Canadian headquarters in Mississauga, Ontario.
“We are excited and inspired to move Silpada forward. Silpada’s long-term interest is best served by being in the hands of people who founded it, grew it and continue to love it,” said cofounder Jerry Kelly in a statement. “This move will ensure Silpada will continue for decades and generations to come, and remain a family-owned business.”