Avon Products, a global direct seller of beauty products, commented on the announcement by New Avon LLC, that it has entered into an agreement to be acquired by LG Household & Health Care (LG H&H).
In March 2016 Avon’s North American business was separated into a privately-held company – New Avon – as a result of a strategic partnership transaction between Avon Worldwide and an affiliate of Cerberus Capital Management. Avon North America is majority-owned and managed by Cerberus. Avon Worldwide retained a minority interest in Avon North America which LG H&H will acquire as part of its transaction.
Jan Zijderveld, CEO of Avon Worldwide, said "At Avon Worldwide, we are operating with urgency as we renew our focus on our Representatives, reboot direct selling, simplify our operations and digitise the business."
The transaction between the separate Avon North America business and LG H&H has no impact on Avon Worldwide’s current operations or strategy. Further, this transaction is unrelated to Avon Worldwide’s previously announced sale of its beauty manufacturing operation in Guangzhou, China to a subsidiary of LG H&H, and the subsequent manufacturing and supply agreement, which was completed in February, 2019.
Today, Avon Worldwide operates in over 50 countries with millions of independent Representatives, with leading market positions in Argentina, Brazil, Mexico, Russia and the Philippines
About Avon Products (Avon Worldwide)
For 130 years Avon has stood for women: providing innovative, quality beauty products which are primarily sold to women, through women. Millions of independent sales Representatives across the world sell Avon brands such as Avon Color and Anew through their social networks, building their own beauty businesses on a full- or part-time basis.
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