US beauty giant Avon has entered into a definitive agreement with LG subsidiary, TheFaceShop, one of Asia's largest consumer goods and beauty companies, under which TheFaceShop will acquire all of the shares of Avon's Beauty manufacturing operation in Guangzhou, China.
The deal is worth a net purchase price of $44m.
Under the terms of the agreement, the companies also agreed to enter 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 transaction is expected to close by February 2019 following customary local regulatory approvals.
