LG Household & Health Care Ltd., a major South Korean cosmetics and household goods maker, said it has bought a U.S. company for US$125 million to expand its foothold in the North American market.
LG Household & Health Care said it has inked the deal with private equity management firm Cerberus Capital Management and global beauty company Avon Products Inc. to buy a 100-percent stake in New Avon LLC, also known as Avon North America, the company said.
“We recognize Avon North America’s strong brand, leading market position in the region and talented employees and representatives. 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,” CEO Cha Suk-yong said in a press release.
Avon North America’s employee base and its sales network throughout North America will support LG Household & Health Care’s growth plan in the region, company officials said.
LG Household & Health Care currently distributes a number of its beauty brands in the North American market, including mid-range skincare brand Belif and premium line, The History of Whoo.
In 2016, Avon sold off its North America business to Cerberus Capital Management to operate under the new name, New Avon. Avon Product is comprised of the remaining international markets.
(Source: Korea Joongang Daily)