NEW YORK ( TheStreet) -- Global beauty company Avon ( AVP) says Monday that it plans to buy all assets of sterling silver jewelry business Silpada Designs for an initial all-cash payment of about $650 million.

If certain earnings growth targets are achieved, Avon expects to make a potential additional payment to current Silpada shareholders in early 2015.

Avon said that it believes the Silpada acquisition will help the company generate incremental growth by reaching new consumers and sales representatives with a higher-priced jewelry brand. Avon added that Silpada will continue to operate as a standalone business.

Silpada co-founders Bonnie Kelly and Teresa Walsh, chief executive and co-founder Jerry Kelly, and the entire Silpada management team will continue to lead the company from their headquarters in Lenexa, Kansas after the deal is completed in the third quarter of 2010. As part of the transaction, Avon will acquire the company's headquarters and warehouse facility in Lenexa.

The acquisition is expected to be accretive to earnings by 3 cents to 5 cents a share in 2011.

"Over the past decade, we have watched Silpada build an enviable reputation as a fast-growing, high-quality jewelry brand and one of the most impressive party-plan direct selling organizations in the world," Andrea Jung, Avon's chairman and chief executive said in a written statement. "This new partnership is an exciting opportunity to reach new consumers and representatives with a higher-tier brand and direct sales model that complements our existing business."

Founded in 1997, privately held Silpada has annual revenues of about $230 million and generates operating margins that are significantly higher than Avon's. The company offers a range of about 450 sterling silver jewelry products at higher price points than Avon's core jewelry offerings. Avon currently generates more than $10 billion in annual revenue.

Avon stock is trading sideways $28.28 two hours into Monday's regular trading session.

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