Sales: $800 million
Sales: $800 million (estimated).
Key Personnel: Laurie Ann Goldman, chief executive officer; Steve Bosson, chief operating officer; Lance Arneson, chief financial officer; Rick Boyle, vice president, information technology and interim chief information officer; Debbie Coffey, vice president, corporate communications; Liza Maldonado, general manager, Avon Puerto Rico and the Islands; Jackie Marcus, vice president, supply chain; Betty Palm, president, social selling; Goran Petrovic, general manager, Avon Canada; Chip Ross, chief human resources officer; Debi Theis, vice president, merchants, marketing and innovation.
Major Products: Color—Avon Makeup Collection; Avon Naturals and Footworks; Skin Care—Anew, Anew Clinical, Anew Genics, Clearskin Professional Care and Avon Solutions; Fragrances—Outspoken and Outspoken Intense by Fergie, Derek Jeter Driven and Derek Jeter Black, Hervé Léger Homme, Far Away, Today, Tomorrow for Her, Haiku Eau.
New Products: Anew Hydra Fusion Collection.
Comments: It’s over for Avon. Four years after acquiring an 80% stake in Avon’s North America business, Cerberus Capital Management is calling it quits.
In April, Cerebrus agreed to sell a majority stake in Avon North America to LG Household & Health Care for $125 million in cash. Back in 2015, Cerberus acquired Avon with a $435 million investment in parent company Avon Products and a separate $170 million payment to purchase a roughly 80% stake in Avon North America and take it private. Under terms of this agreement, LG H&H will acquire all of Cerberus’ majority interest and Avon Worldwide’s minority interest in Avon North America. The transaction has been approved by the LG H&H board of directors. LG H&H had sales of more than $13 billion last year. It already distributes a number of its brands in the US, including Belif and The History of Whoo.
According to LG H&H, the addition of Avon’s iconic brand, award-winning products, dedicated employee base and network of 250,000 sales representatives throughout North America will support its international growth plans. Under LG H&H’s ownership, Avon North America will continue its strategy of product innovation, while strengthening its position as the leading social selling beauty company in the region. Avon North America is expected to benefit from LG H&H’s world-class R&D capabilities in cosmetics, personal care, fragrance, packaging and design.
“We recognize Avon North America’s strong brand, leading market position in the region, and talented employees and representatives,” said LG H&H CEO Suk Cha. “Avon North America’s innovative social selling model builds deep connections with customers and we are excited to leverage this as we continue to expand. We look forward to building on Avon North America’s success to drive customer engagement and long-term growth in this market.”
Avon appointed a new chief executive officer in January. Seasoned consumer marketing executive and former CEO of Spanx, Laurie Ann Goldman succeeded Scott White.
“The right product has the power to change a woman’s life, and each woman has the power to change the world. I’m thrilled to join Avon, the company that invented social selling, and lead the team and community of beauty advisors in driving product sales and progress for women,” Goldman commented.
Following the sale of New Avon to LG H&H, Goldman noted that LG H&H respects and admires New Avon’s strong community of representatives, and supports its mission to empower women through economic opportunity.
“We are thrilled to welcome our new partner, who shares our commitment to innovation, and our clear focus on putting customers first,” said Goldman. “We have appreciated our partnership with Cerberus over the last three years and their support as we strengthened the company and reset our path toward long-term success.”