LG Acquires Avon
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LG Household & Health Care has acquired Avon North America in a US$125 million deal with an affiliate of Cerberus Capital Management.
LG H&H holds a strong market position in South Korea’s consumer goods industry, one of the world’s largest beauty markets, with more than $13.1 billion in sales last year. It currently distributes a number of its brands in the US, including Belif and The History of Whoo.
The addition of Avon’s brand, products, employee base and network of 250,000 sales representatives throughout North America is expected to support LG H&H’s international growth strategies.
“We recognise Avon North America’s strong brand, leading market position in the region, and talented employees and representatives,” said LG Household & Health Care CEO Suk Cha. “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 Avon North America CEO Laurie Ann Goldman.
The transaction is expected to close on September 30 and is subject to certain customary closing conditions, including regulatory approvals in the US.
Questions & Answers
Q.What is the primary reason LG H&H acquired Avon North America?
What is the primary reason LG H&H acquired Avon North America?
The acquisition is expected to support LG H&H’s international growth strategies. Avon’s brand, products, employee base, and network of 250,000 sales representatives in North America will contribute to this expansion.
Q.Who was the seller of Avon North America in this deal?
Who was the seller of Avon North America in this deal?
LG Household & Health Care acquired Avon North America from an affiliate of Cerberus Capital Management. The deal was valued at US$125 million.
Q.How will LG H&H utilise Avon North America's business model?
How will LG H&H utilise Avon North America's business model?
LG H&H is excited to use Avon North America's innovative social selling model. This model builds deep connections with customers and will help drive customer engagement and long-term growth in the market.
Q.When is the acquisition expected to be finalised?
When is the acquisition expected to be finalised?
The transaction is expected to close on September 30. This is subject to certain customary closing conditions, including obtaining regulatory approvals in the US.
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