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Avon selling jewelry unit back to former owners

Avon's copy of the famous royal engagement ring,

Avon's copy of the famous royal engagement ring, an 8-carat oval faux sapphire surrounded by cubic zirconias. The company has announced it is selling the jewelry company Silpada back to the company's co-founders and their families for $85 million. Credit: Handout

Beauty products company Avon is selling the jewelry company Silpada back to the company's co-founders and their families for $85 million for 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 Designs 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.

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