LG Household & Health Care buys Avon Japan for ¥10.5 billion

LG Household & Health Care buys Avon Japan for ¥10.5 billion

LG Household & Health Care has acquired all 4 million shares in Avon Japan for the sum of ¥10.5 billion, according to a report published by Pulse News.

The K-beauty giant has also reported record profit for the first quarter of the financial year, with operating profit leaping 9.2 percent to KRW283.7 billion and sales up 6.5 percent to KRW1.66 trillion. The beauty care division was the star of the show, growing income 20.2 percent to reach KRW212 billion while sales climbed 12.1 percent to 947.7 billion.

The purchase, which will be completed via LG’s wholly owned Japanese subsidiary Ginza Stefany, itself acquired in 2012, will grant LG a firm foothold on the Japanese market – one which is notoriously difficult for foreign brands to penetrate.

“Based on Avon brands’ credibility in Japan and its five decades of relationships with local companies, LG Household & Health Care would like to overcome possible obstacles in expanding business in the country,” said the K-beauty behemoth in a statement.

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