LG, that major Korean company that made the beautiful LG Shine cell phone and lots of other electronics, bought out the Avon company. LG happens to own one of the largest Healthcare & Beauty companies in Korea, and this partnership has allowed Avon to access some of the world's best brands for a fraction of the cost.
NEWS PROVIDED BY New Avon LLC Apr 25, 2019, 02:23 ET
SEOUL and NEW YORK, April 25, 2019 /PRNewswire/ --
LG Household & Health Care To Acquire New Avon, LLC
LG H&H Expands Reach in North American Market
Transaction Benefits Avon North America's Iconic Brand, Independent Sales Representatives and Product Innovation
LG Household & Health Care, Ltd. ("LG H&H", "the Company") (KRX: 051900) today announced that it has entered into a definitive agreement with an affiliate of Cerberus Capital Management, L.P. ("Cerberus") and Avon Products, Inc. ("Avon Worldwide") to acquire New Avon, LLC* ("Avon North America") for $125 million in cash. LG H&H will acquire the entirety of Cerberus' majority interest and Avon Worldwide's minority interest in Avon North America. The transaction has been approved by the LG H&H Board of Directors.
LG H&H is Korea's leading consumer goods company, with strong market positions in all major categories including cosmetics, personal care and home care. Korea is one of the world's largest and most innovative beauty markets, with over $13.1 billion in sales in 2018(1). LG H&H currently distributes a number of its brands in the U.S., including belif and The history of Whoo.
The addition of Avon's iconic brand, award-winning products, dedicated employee base and network of 250,000 sales representatives throughout North America will support LG H&H's international growth plans. Under LG H&H's ownership, Avon North America will continue its strategy of product innovation, while strengthening its position as the leading social selling beauty company in the region. Avon North America is expected to benefit from LG H&H's world-class R&D capabilities in cosmetics, personal care, fragrance, packaging and design.
Suk Cha, CEO of LG Household & Health Care, 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. 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," said 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."
Michael F. Sanford, Co-Head of Private Equity and Senior Managing Director at Cerberus, added, "LG H&H is a global leader in cosmetics and beauty products, its commitment to investing in the Avon brand and product lines makes LG H&H a great long-term home for Avon North America."
The transaction is expected to close on September 30, 2019 and is subject to certain customary closing conditions, including regulatory approvals in the U.S.
Kirkland & Ellis LLP acted as legal counsel to Avon North America in relation to this transaction.
ABOUT LG HOUSEHOLD & HEALTH CARE
LG Household & Health Care (LG H&H) is the #1 consumer goods company in Korea, with leading positions in all major categories including cosmetics, personal care, home care and beverages. The company is listed on the Korea Stock Exchange with a market capitalization of USD $20 billion and full-year revenue of approximately USD $6 billion for 2018. In recent years, LG H&H has accelerated its expansion beyond Korea, with leading luxury cosmetics brands such as 'The history of Whoo', 'su:m' and 'belif', and is now one of the top global cosmetics companies in Asia.
ABOUT NEW AVON LLC
New Avon, LLC ("Avon North America") is the leading social selling beauty company in North America, with independent sales Representatives throughout the United States, Puerto Rico, and Canada. Avon North America's portfolio includes award-winning skincare, color cosmetics, fragrance, personal care, and health and wellness products featuring brands such as ANEW, Avon True Color, Espira, and Skin So Soft, as well as fashion and accessories. Avon has a 133-year history of empowering women through economic opportunity, and supporting the causes that matter most to women. Avon philanthropy has contributed over $1 billion globally toward eradicating breast cancer and domestic violence. Learn more about Avon North America and its products at www.avon.com.
Founded in 1992, Cerberus is a global leader in alternative investing with approximately $39 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.