Co-Founders Buy Back Lenexa-Based Silpada Designs From Avon
Sold to Avon for 650 million three years ago, now bought back for 85 million.
Avon hoped the acquisition would help it reach new customers and sales representatives. It kept Silpada operating as a standalone business with more than 32,000 independent sales representatives.
But Avon now says stabilizing its U.S. business is a top priority in its turnaround efforts. It decided to divest of Silpada because of the “timeline and investment required to return the business to historical levels of profitability.”
“Divesting Silpada is an important step in our plan, and will enable us to focus our resources on the core Avon business,” Sheri McCoy, Avon’s chief executive officer, said in a release Tuesday.
Tom Kelly, no relation to Jerry and Bonnie Kelly, became chief executive officer of Silpada a year ago. He declined to comment on Silpada’s sales under Avon.
“We are optimistic going forward about Silpada’s future. We think the business model is right and the fact that the founders are coming back on board will immediately give positive emotional traction on our revenue and profits,” Kelly said.