April 25, 2024

• 

[THE INVESTOR] LG Household & Health Care said on April 24 its affiliate will purchase a Japanese cosmetics firm for 10.5 billion yen (US$97.60 million) to expand its overseas business.

Ginza Stefany, based in Japan and wholly owned by LG H&H, has decided to buy a 100 percent stake in Avon Products, according to the Korean firm.

Founded in 1968, Avon Products has 50 years of experience in the cosmetics market in Japan, with sales reaching 100 billion won (US$93 million) for the fiscal year 2017, according to LG H&H. Avon Products ranked 21st in terms of sales in the Japanese cosmetics market, beating Lancome at 27th and Estee Lauder at 41st, LG H&H, citing a 2016 report from market researcher Euromonitor.

The acquisition is the Korean cosmetics giant‘s latest move to strengthen its foothold in Japan after buying local firms Ginza Stefany in 2012 and Everlife in the following year.

“Based on Avon brands’ credibility in Japan and its five decades of relationships with local companies, LG H&H would like to overcome possible obstacles in expanding business in the country,” the company said in a statement.

The Korean cosmetics giant also released record-high earnings for the first three months of this year.

It reported 196.4 billion won of net profit in the first quarter, up 8.8 percent from a year earlier. Sales rose 6.5 percent on-year to reach 1.7 trillion won, and operating profit was up 9.2 percent to 284 billion won during the cited period, according to its regulatory filing.

By Song Seung-hyun and newswires (ssh@heraldccorp.com)