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Avon to Sell Silpada Jewelry Unit to Rhinestone for $85 Million

Avon Products Inc., the door-to-door cosmetics retailer, agreed to sell its Silpada Designs jewelry unit to Rhinestone Holdings Inc. for $85 million in cash, about one-seventh the amount it paid to buy the company in 2010.

The agreement also includes an earn-out payment of as much as $15 million if Silpada meets certain profit targets over a two-year period, the New York-based makeup company said today in a statement. Avon said it expects to take an $80 million pretax, noncash charge on the estimated loss from the sale. Rhinestone is a new company created by Silpada’s founders.