LG Household & Healthcare’s cosmetics brand The Face Shop has acquired a 100 percent stake in global beauty brand Avon’s factory in Guangzhou, China, for 79.3 billion won ($70 million), the company said Wednesday.
The company said that through the buyout, it will maximize The Face Shop’s manufacturing capacity and strengthen its presence in China and global markets.
The firm said the buyout process will be completed by February, following the Chinese government’s approval.
Built on 74,500 square meters of land, Avon’s Guangzhou factory manufactures 13,000 tons of beauty products annually, ranging from skin care to makeup, hair and body products. All facilities meet the US Food and Drug Administration’s Current Good Manufacturing Practices, according to the firm.
“We are delighted to secure Avon’s factory, which is equipped with the latest facilities. We are well-aware of Avon’s longstanding brand power and sales capacity. We hope to expand product lineups of both The Face Shop and Avon, and grow together,” said Cha Suk-yong, vice chairman of LG Household & Healthcare.
By Kim Da-sol (email@example.com)