Avon to sell China manufacturing operationStaff Writer |
Acquisition Net proceeds to Avon will be $44 million
Avon Products announced it has entered into a definitive agreement with TheFaceshop Co., a subsidiary of LG Household & Health Care, under which TheFaceShop will acquire all of the shares of Avon's Beauty manufacturing operation in Guangzhou, China.
The companies also agreed to enter into a manufacturing and supply agreement, under which the Guangzhou factory will manufacture products for Avon's fast-growing Chinese business and other markets, while maximizing the capacity of the plant for its own production. Avon's associates at the facility will remain with the operation.
The transaction is expected to close by February 2019 following customary local regulatory approvals. ■
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