Avon Reportedly Sells Its Last U.S. Factory

(RTTNews) - Avon is selling its last the U.S factory to a French cosmetics manufacturer, the Wall Street Journal reported citing people familiar with the plan.

Fareva Group will take over production at Avon's factory in Morton Grove, Ill.. The contract manufacturer also will make private-label products for drugstore chain Walgreens Boots Alliance Inc. at the underutilized, 500,000-square-foot plant, the report said.

Financial terms couldn't be learned. Current Avon employees are expected to keep their jobs as part of the ownership change, the report said. Avon employed 362 in Morton Grove in 2016, according to the northern Chicago suburb's records.

The deal comes less than three years after New Avon LLC, formerly the North American arm of Avon Products Inc., split from the larger company as part of a deal with private-equity firm Cerberus Capital Management LP. Cerberus bought a 17% stake in the parent company and acquired 80% of New Avon, which separated the unprofitable division from Avon's international business.