LG H&H sells The Avon Company for $6M, exits at a loss
What's the deal? LG Household & Health CareDealroom has a profile for this one. Try Dealroom → (LG H&H) is selling its US subsidiary The Avon CompanyDealroom has a profile for this one. Try Dealroom → for $6 million (about 8.4 billion won). Its North American arm, LG HH USADealroom has a profile for this one. Try Dealroom →, signed a share purchase agreement on August 24 to transfer 100% of the unit to Stratford WorldwideDealroom has a profile for this one. Try Dealroom →.
Why now? The Korean company bought The Avon Company in 2019 for 145 billion won as a foothold in North America, securing Avon's regional business rights. The unit posted continued net losses and failed to deliver synergies, making the sale — at a fraction of the purchase price — a costly stumble for LG H&H.
What's the endgame? LG H&H is refocusing its North American operations on retail- and digital-based K-beauty and wellness brands. It plans to concentrate resources on fast-growing names such as Dr.GrootDealroom has a profile for this one. Try Dealroom →, BelifDealroom has a profile for this one. Try Dealroom →, and CNPDealroom has a profile for this one. Try Dealroom → to widen consumer touchpoints across those channels.
Alongside the sale, LG HH USA will convert 286.3 billion won it had loaned to Avon into equity. The move clears internal debt between the two, with no cash payment and no change to ownership stakes.
Who's buying? Stratford Worldwide is an affiliate of Regent, the global investment firm that runs Avon InternationalDealroom has a profile for this one. Try Dealroom →. Regent acquired Avon International in January and operates the brand across major markets outside North America; after the deal, Avon's North American business will sit under Avon International's leadership.
An LG H&H official said the decision lets Avon "seek new growth opportunities" through its social-selling model while LG H&H focuses on brand-led growth in North America. The company said it will "concentrate resources and capabilities on competitive beauty and wellness brands" via retail and digital channels (translated from Korean).
The signal: The exit marks a retreat from a direct-selling bet that never paid off, and a pivot toward the K-beauty brands driving growth abroad. It also consolidates the Avon name under a single owner, with Regent now controlling the business globally.
Read more: edaily.co.kr
Image credit: Generated with Gemini
