Avon sells Chinese factory to TheFaceShop for US$47 million

Avon sells Chinese factory to TheFaceShop for US$47 million

Avon has announced that it has completed the sale of its China manufacturing facility to LG Household & Health Care-owned TheFaceShop. TheFaceShop has acquired all of the shares in Avon’s Guangzhou beauty plant for US$47 million.

The two companies have entered into a manufacturing and supply agreement whereby the Guangzhou facility will continue to manufacture products for Avon’s Chinese business and other markets.

“We are very pleased to complete this transaction and see it as a significant step in our efforts to ‘Open Up Avon’. The more local structure better fits our purpose and better positions us to grow in China and the wider Asian market,” said Jan Zijderveld, CEO of Avon.

“2019 is the year for Avon to execute against its initiatives,” he continued. “In addition to the sale of our China facility, we have recently announced several tangible initiatives to operate a more efficient, leaner and agile global infrastructure, including a 10 percent global headcount reduction and a 25 percent SKU reduction in 2019. We will continue to look at our assets and infrastructure and determine the optimal structure as we move forward.”

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