New Avon Sells to LG Household & Health Care for $125 Million

LG Household & Health Care has reached a deal to buy New Avon from Cerberus Capital Management LP and Avon Products Inc. for $125 million in cash. The deal is said to strengthen LG H&H’s foothold in the North American market and support the South Korean company’s international growth strategy. Avon has 250,000 sales representatives in the region. LG said on Thursday that the company plans to support “its strategy of product innovation, while strengthening its position as the leading social selling beauty company in the region.” LG is also planning for Avon to benefit from its R&D capabilities in cosmetics, personal care, packaging and design. “We recognize Avon North America’s strong brand, leading market position in the region, and talented employees and representatives,” Suk Cha, chief executive officer of LG H&H, said in a statement. “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.” While buying New Avon may provide LG a stronger foothold in North America, where the company already sells some brands, like Belif and The

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