LG Household sells US subsidiary Avon, pivots North America business toward K-beauty

LG Household is selling its subsidiary The Avon Company as it moves to reshape its North America business around retail and digital-focused K-beauty and wellness brands.

According to industry sources Tuesday, LG Household's North American unit has signed an agreement to sell its stake in The Avon Company to Stratford Worldwide, an affiliate of Regent, the global investment firm that operates Avon International.

The sale price is $6 million, with the final amount to be confirmed at closing. The deal is expected to close Sept. 1.

LG Household acquired the North American rights to Avon in April 2019 and had since pursued expansion in the region. With the divestiture, the company plans to deepen its consumer reach through brands showing rapid global growth, including Dr. Groot, Belif and CNP.

"We will concentrate our resources and capabilities on competitive beauty and wellness brands through retail and digital channels to accelerate growth," an LG Household official said.