Avon Products To Sell China Manufacturing Operation

(RTTNews) - Avon Products Inc. (AVP) said that it reached a definitive agreement with TheFaceshop Co. Ltd., a subsidiary of LG Household & Health Care Ltd., by which TheFaceShop will acquire all of the shares of Avon's Beauty manufacturing operation in Guangzhou, China. Net proceeds to Avon will be $44 million.

The companies also agreed to enter into a manufacturing and supply agreement, under which the Guangzhou factory will manufacture products for Avon's fhinese 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.