LG Household & Health Care Sells U.S. Avon, Restructures North American Business

[Financial News] LG Household & Health Care will sell Avon, a U.S. direct-selling cosmetics company, and shift its North American business toward K-beauty brands.
According to LG Household & Health Care on the 25th, its North American unit signed a contract the previous day to sell its entire 100% stake in Avon Products to Stratford Worldwide. The sale price is $6 million, or about 8.358 billion won.
In connection with the deal, the North American unit will convert $255.07 million, or about 286.3 billion won, that it had lent to Avon into equity. This is part of a process to settle internal creditor-debtor relations between the two companies. There will be no separate cash payment from the equity conversion, and the ownership stake will remain unchanged.
Stratford Worldwide is an affiliate of Regent, a global investment firm that operates Avon International. Regent oversees Avon businesses in major regions outside North America, including Europe, Asia and Africa.
The sale is part of a broader restructuring of the company’s global portfolio. LG Household & Health Care had expanded its local business by acquiring U.S. beauty brands such as Avon, The Crème Shop and Boinka, but it is now shifting toward its own brands as K-beauty gains popularity.
LG Household & Health Care plans to focus on nurturing brands with strong global growth potential, including Dr. Groot, Belif and CNP Laboratory. The company aims to expand its presence in retail and digital channels and broaden its K-beauty and wellness brand portfolio.
An LG Household & Health Care official said, "This decision was made to focus on a brand-centered growth strategy in North America." The official added, "We will accelerate growth by concentrating our resources and capabilities on competitive beauty and wellness brands, centered on retail and digital channels."
[email protected] Kang Myung-yeon Reporter