LG Household & Health Care has announced that it has entered into a definitive agreement with an affiliate of Cerberus Capital Management and Avon Products to acquire the North American branch of the direct sales giant, New Avon, for US$125 million.
The K-beauty giant said that the acquisition would support its growth plans in the region, where it already distributes its popular skin care lines belif and The history of Whoo. Under LG H&H’s leadership, Avon North America will continue its strategy of product innovation while strengthening its position as the leading social selling beauty company in the region.
“We recognize Avon North America’s strong brand, leading market position in the region, and talented employees and Representatives,” said Suk Cha, CEO of LG Household & Health Care. “Avon North America’s innovative social selling model builds deep connections with customers and we are excited to leverage this as we continue to expand. We look forward to building on Avon North America’s success to drive customer engagement and long-term growth in this market.”
“LG H&H respects and admires our strong community of Representatives, and supports our mission to empower women through economic opportunity,” added Laurie Ann Goldman, CEO of Avon North America. “We are thrilled to welcome our new partner, who shares our commitment to innovation, and our clear focus on putting customers first. We have appreciated our partnership with Cerberus over the last three years and their support as we strengthened the company and reset our path toward long-term success.”
Cerberus invested some US$170 million in 2016 for an 80 percent stake in New Avon, with Avon Products retaining 20 percent ownership.