LG Household & Health Care Sells U.S. Avon, Focuses on Brand Growth

Sale of 100% Stake in Avon USA and Canada
Focusing Resources on K-Beauty and Wellness Brands like Dr. Groot

LG Household & Health Care has announced the sale of its subsidiary, The Avon Company.

On August 24 (Korea Standard Time), LG Household & Health Care's North American subsidiary (LG H&H USA, Inc.) stated that it had signed a stock purchase agreement to sell 100% of its shares in The Avon Company (hereinafter referred to as Avon's North American business) to Stratford Worldwide. The exact sale price will be finalized at the time of the transaction's closing.

Stratford Worldwide is an affiliate of global investment firm Regent, which operates Avon International.

LG Household & Health Care LG Seoul Station Building. LG Household & Health Care

Since acquiring Avon's North American business rights in April 2019, LG Household & Health Care has worked to expand its business in North America and enhance its competitiveness. A company representative explained, "This transaction is part of a global portfolio restructuring aimed at reprioritizing our business portfolio in response to rapidly changing consumer purchasing patterns and distribution environments, and at focusing our resources and capabilities on brands and channels with high growth potential."

Moving forward, LG Household & Health Care plans to strengthen consumer engagement in retail and digital channels by centering on rapidly growing global brands such as Dr. Groot, belif, and CNP, while also expanding its K-beauty and wellness brand portfolio.

A company representative commented, "While Avon is seeking new growth opportunities based on its social selling business model, LG Household & Health Care has decided to shift its focus in North America to a brand-centered growth strategy. We will accelerate growth by concentrating resources and capabilities on competitive beauty and wellness brands primarily through retail and digital channels."

Meanwhile, LG Household & Health Care's North American subsidiary will convert the amount loaned to Avon into equity as part of this transaction. This is a procedural measure to settle internal creditor-debtor relationships between the two companies; there will be no separate cash payment resulting from the debt-for-equity swap, nor will there be any change in the ownership percentage.

This content was produced with the assistance of AI translation services.