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for your Free Silver Investment Guide and benefit from its one of a kind perspective on silver investing.Avon Sees Value of Silver
Avon is set to seize the value of silver by making a deal with Silpada Designs, a silver jewelry company. The deal was announced on Monday, and the agreement could see Avon owning the majority of assets of Silpada Designs by making an initial payment of $650 million.
Why would a company famous worldwide for producing and marketing cosmetic products take a bite in the silver market? The answer is simple: millions of dollars in annual profit. Sipalda has business operations spread across Canada, United States and the United Kingdom. According to sources from Avon, Sipalda earns an annual profit of about $230 million. In fact, the silver bullion is so profitable that Avon’s operational margin pale in comparison to that of Sipalda’s.
Avon further stated that this acquisition is in accordance with their strategy to complement its business beauty-focused operation. The company recognizes both the aesthetic value of silver and the financial value of the precious metal.
Although Avon has purchased the majority of assets from Sipalda, the silver jewelry company will still maintain its name and will operate as an independent business. Even the heads of Sipalda, co-founders Bonnie Kelly, Jerry Kelly and Teresa Walsh will keep their position in the company. All sales representativea of Sipalda will keep their jobs and will continue their work in direct selling.
Andrea Jung, CEO and chairman of Avon, welcomed Sipalda as part of the family. Jung was quoted as saying that the new partnership is an ”exciting opportunity”, noting Sipalda’s growth as a reputable silver jewelry company, and that the new partnership will allow Avon to reach a new audience. Avon hopes that both companies will raise significant profits thanks to the silver commodities as soon as the acquisition is finalized by the 3rd quarter of the year.
