[THE INVESTOR] The Face Shop, a wholly owned cosmetics unit of LG Household & Health Care, has signed a deal to acquire a plant in China from Avon Products for 79.3 billion won (US$70.56 million), its parent firm said on Jan. 9.
The company will produce its own cosmetics products for sale locally, as well as Avon products under an original equipment manufacturer arrangement, at the 13,000-ton-a-year Guangzhou plant.
“We are pleased to have reached this agreement with Avon and add a state-of-the-art facility with powerful capabilities to deliver quality products for the fast-growth market,” LG H&H CEO Cha Suk said in the statement.
The acquisition deal is subject to approval from the Chinese authorities next month, the company said.
Avon CEO Jan Zijderveld said the agreement provides the US company with greater operational and financial flexibility, while allowing it to benefit from the local knowledge, world-class products, R&D expertise and infrastructure of internationally recognized partners such as LG H&H.
By Song Seung-hyun and newswires (email@example.com)