LONDON, Feb. 22, 2019 /PRNewswire/ -- Avon Products, Inc.
(NYSE: AVP) ("the Company"), a globally recognised leader in direct
selling of beauty products, today announced it completed the sale
of its China manufacturing
facility to TheFaceShop Co., Ltd., a subsidiary of LG Household
& Health Care Ltd., one of Asia's largest consumer goods and beauty
companies. TheFaceShop has acquired all of the shares of Avon's
beauty manufacturing operation in Guangzhou, China. Net proceeds
(pre-tax) to Avon are
approximately $47 million.
As previously announced, the companies have entered 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 closing of the sale is a concrete step in Avon's "Open Up" transformation plan, key to
which is a strategic shift to build more relationships with best in
class partners. This is one example of measures Avon is taking to manufacture and deliver
products more efficiently, to deliver a more agile and improved
service to its millions of beauty entrepreneurs and their customers
around the world.
Jan Zijderveld, CEO of
Avon, said, "We are very pleased
to complete this transaction and see it as a significant step in
our efforts to "Open Up Avon." The more local structure better fits
our purpose and better positions us to grow in China and the wider Asian market.
Mr. Zijderveld continues, "2019 is the year for Avon to execute against its initiatives. In
addition to the sale of our China
facility, we have recently announced several tangible initiatives
to operate a more efficient, leaner and agile global
infrastructure, including a 10% global headcount reduction and a
25% SKU reduction in 2019. We will continue to look at our assets
and infrastructure and determine the optimal structure as we move
forward."
About Avon Products, Inc.
For 130 years Avon has stood for women: providing
innovative, quality beauty products which are primarily sold to
women, through women. Millions of independent sales
Representatives across the world sell iconic Avon brands such as
Avon Color and ANEW through their social networks, building their
own beauty businesses on a full- or part-time basis.
Avon supports women's empowerment,
entrepreneurship and well-being and has donated over $1billion to women's causes through Avon and the Avon Foundation. Learn more
about Avon and its products at
www.avonworldwide.com. #Stand4Her
About LG Household & Health Care Ltd.
LG Household
& Health Care (LG H&H) is the #1 consumer goods company in
Korea, with leading positions in all major categories including
cosmetics, personal care, home care and beverages. The company
is listed on the Korea Stock Exchange with a market capitalization
of USD 18 billion as of December 1, 2018 and full-year revenue is
approximately USD 6 billion (based on
Bloomberg Estimates). In recent years, LG H&H has accelerated
expansion beyond Korea, with leading luxury cosmetics brands such
as 'The history of Whoo', 'su:m' and 'belif', and is now within the
top 10 global cosmetics companies in Asia.
Forward-Looking Statements
This press release
contains "forward-looking statements" that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including statements relating to the Company's
transformation plan and its strategy and future growth in
Asia. Because forward-looking statements inherently involve
risks and uncertainties, actual future results may differ
materially from those expressed or implied by such forward-looking
statements. These risks and uncertainties include, but are
not limited to, the possibility of business disruption, competitive
uncertainties, and general economic and business conditions in
Avon's markets as well as the
other risks detailed in Avon's
filings with the Securities and Exchange Commission. Avon undertakes no obligation to update any
statements in this press release for changes that happen after the
date of this release.
View original
content:http://www.prnewswire.com/news-releases/avon-completes-sale-of-china-manufacturing-operation-300799810.html
SOURCE Avon Products, Inc.