Korean consumer goods company LG Household & Health Care (LG H&H) has agreed to acquire New Avon LLC (Avon North America) for $125 million (€111.6 million) in cash.
The agreement was signed with an affiliate of Cerberus Capital Management and Avon Products, with LG H&H acquiring Cerberus’ majority interest and Avon’s minority interest in Avon North America.
LG H&H is active in the cosmetics, personal care and home care categories in Korea. The company also distributes a number of its brands in the US, including the belif and The History of Whoo skin care ranges.
According to a release from LG H&H, the acquisition of the Avon brand will support the Korean company’s international growth plans. Avon North America will continue with product innovation and will strengthen its position as the leading social selling beauty company in the US.
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 H&H. “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."
The transaction is expected to be complete by the end of September 2019, subject to certain customary closing conditions.
Avon’s aerosol products include the Skin So Soft insect repellent and the Rare Pearls travel spray; LG H&H offers a sun spray through its KACHET men’s cosmetics brand, as well as a range of aerosol products in the home cleaning category.