Avon sells majority stake in Avon Japan to private equity group

Published: 11-Nov-2010
Finance

Multinational puts focus on ‘direct selling markets with higher growth potential’


The current low growth potential of the Japanese cosmetics market is understood to be behind the decision of Avon Products Inc to sell its majority stake in Avon Japan to the TPG Capital investment fund for ¥7.3bn (€65bn). Avon said its aim was to focus on "direct selling markets with higher growth potential".

Avon's holding in the Japanese business is 74.6% and accounts for below 2% of group sales. Andrea Jung, Avon chairman and ceo, said that while Japan was an important consumer market, analysis indicated that it would require "significant additional investment" to generate profitable growth in the near to intermediate term.

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