Last Update: 03-Jul-13 07:44 ET
Avon Products shares little changed following sale of jewelry business for $85 mln
Avon Products (AVP $21.28 -0.01) disclosed that on June 30, 2013 it entered into an Asset Purchase Agreement to sell its Silpada jewelry business to Rhinestone Holdings for $85 million, plus an earn-out up to $15 million if Silpada achieves specific earnings targets over two years. Rhinestone is a newly formed entity owned by the founders of Silpada. Earlier this year, the Company disclosed that it was reviewing strategic alternatives for Silpada.
As of June 30, 2013, the Company will account for and report Silpada as discontinued operations. The Company expects to record a charge of approximately $80 million pre-tax (approximately $50 million net of tax), reflecting the estimated loss on sale, in the second quarter of 2013. The transaction is expected to close on July 3, 2013. The Company expects that the proceeds from the sale will be used for general corporate purposes, including the repayment of outstanding debt.
Avon Products (AVP $21.28 -0.01) disclosed that on June 30, 2013 it entered into an Asset Purchase Agreement to sell its Silpada jewelry business to