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Avon to Sell China Manufacturing Business for $44 Million

Avon Products Inc. plans to sell its China manufacturing business to The Face Shop Co. Ltd.
Under the terms of the deal, Face Shop, an LG Household & Health Care Ltd. subsidiary, will acquire all shares of Avon’s beauty manufacturing operations in Guangzhou, China. Avon expects $44 million in proceeds from the deal.
The two parties have an agreement that the facility will continue to manufacture products for Avon, while also handling manufacturing for Face Shop.
“This transaction is a significant step forward in our efforts to ‘Open Up Avon’ by operating more efficiently, with a leaner, more agile global infrastructure,” Avon chief executive officer Jan Zijderveld said in a statement. “This agreement provides us with greater operational and financial flexibility, while allowing us to benefit from the local knowledge, world-class products, R&D expertise and infrastructure of internationally recognized partners such as LA H&H. By operating with a local structure that fits our purpose, we will be better positioned to capture the significant opportunity in China and the wider Asian market.”
This is one of many moves Zijderveld has made since he joined Avon from Unilever in 2018. He’s hired a slew of new executives, many with regional market expertise, and has worked to

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Via:: https://wwd.com/beauty-industry-news/beauty-features/avon-to-sell-china-manufacturing-business-for-44m-1202950526/