LENEXA, Kan. (AP) - Beauty products company Avon is selling the Lenexa-based jewelry company Silpada Designs back to the company's co-founders and their families for $85 million, a fraction of what it paid for the company three years ago.
Avon announced earlier this year that it was reviewing strategic options for the business, which sells sterling silver jewelry at home parties. Avon purchased Silpada in July 2010 for $650 million.
The families of co-founders Jerry and Bonnie Kelly and Tom and Teresa Walsh, through their company Rhinestone Holdings Inc., were the highest bidders in an auction process.
Avon said in a regulatory filing on Tuesday that the transaction also includes up to $15 million more if Silpada hits certain earnings targets over the next two years.
Silpada's U.S headquarters will remain in Lenexa, Kan., and their Canada office will remain in Mississauga, Ontario.