Avon Products comments on Avon North America transaction
Avon Products commented on the announcement by New Avon, Avon North America, that it has entered into an agreement to be acquired by LG Household & Health Care, or LG H&H. In March 2016 Avon's North American business was separated into a privately-held company -- New Avon -- as a result of a strategic partnership transaction between Avon Worldwide and an affiliate of Cerberus Capital Management, L.P. Avon North America is majority-owned and managed by Cerberus. Avon Worldwide retained a minority interest in Avon North America which LG H&H will acquire as part of its transaction. Jan Zijderveld, CEO of Avon Worldwide, said "We have built a strong relationship with LG H&H and know them to be a great partner. We believe this transaction is a testament to LG's belief in the strength of Avon's brand and business model, and are excited to see the progress that Avon North America makes as part of LG H&H. At Avon Worldwide, we remain focused on executing our strategy to 'Open Up Avon.' We are operating with urgency as we renew our focus on our Representatives, reboot direct selling, simplify our operations and digitise the business. We are seeing signs that our efforts are taking hold and are confident that we are on the right path to returning to growth and driving value for our shareholders." The transaction between the separate Avon North America business and LG H&H has no impact on Avon Worldwide's current operations or strategy. Further, this transaction is unrelated to Avon Worldwide's previously announced sale of its beauty manufacturing operation in Guangzhou, China to a subsidiary of LG H&H, and the subsequent manufacturing and supply agreement, which was completed in February, 2019.