Jerry and Bonnie Kelly, Tom and Teresa Walsh, and additional members of their respective families, reacquired Silpada after reaching an agreement with Avon earlier this month.
Prior to the acquisition, the four had formed Rhinestone Holdings Inc., along with two daughters from the Kelly and Walsh families, with the specific objective to repurchase Silpada on auction from Avon. The move proved a success as Rhinestone purchased Silpada for $85 million, with an earn-out payment of up to $15 million if the business achieves certain profit targets over the course of the next two years.
The jewelry company, based in Lenexa, Kan., has appointed Kelsey Perry and Ryane Delka, daughters of the Walsh and Kelly families respectively, to serve as Co-Presidents. Kelsey most recently worked as Silpada’s Brand Merchandising Manager, and Ryane was formerly Silpada’s Vice President of Sales, Development and Training.
“Kelsey and Ryane grew up with Silpada and have held numerous roles, touching many aspects of the business,” Bonnie Kelly said. “As members of Silpada’s management team, they have been involved in the strategic vision of this company for many years and have earned respect from their colleagues and Silpada representatives.”
As a privately held company, Silpada will be overseen by a Board of Directors, with Tom Walsh and Jerry Kelly serving as Co-Chairmen. Bonnie Kelly, Teresa Walsh, Kelsey Perry and Ryane Delka will also serve on the board.
The company also stated that it plans to stay in the Kansas City area indefinitely.
On Monday, approximately 300 of Silpada’s corporate employees gathered on the headquarters lawn, waving Silpada-branded flags to celebrate the company’s homecoming. Silpada’s more than 32,000 independent representatives across the country and in Canada were also invited to take part in the celebration by tuning in to a live webcast of the event.
“Kansas City is home for Silpada, and we wanted to keep Silpada in the community where it all started,” Tom Walsh said. “We are excited that Silpada will remain a Kansas City-based, family-owned business with strong economic development opportunities.”
In addition, Silpada announced that Tom Kelly—no relation to Jerry and Bonnie—will remain as Silpada’s Chief Executive Officer. With 33 years of direct sales industry experience, Tom has held numerous positions in strategy, sales operations and marketing. Prior to joining Silpada, he served as Avon’s Senior Vice President of Global Sales Development. Tom Kelly is a former chairman of both the Direct Selling Association and the Direct Selling Education Foundation (DSEF). He joined Silpada as President and Chief Operating Officer in March 2012 and was promoted to CEO in July 2012.
“Clearly, the Silpada team has a long-term vision that I believe in, and I look forward to helping our representatives, employees and new ownership grow this business for years to come,” Tom Kelly said. “I am very excited about Silpada’s future.”
Source: Direct Selling Associaiton