New Avon LLC to be Acquired by LG Household & Health Care Ltd.

In a press release today, it was announced that New Avon LLC (Avon North America) will be acquired by Korean company LG for the price of $125 million. The transaction is expected to close on September 30, 2019.

While this is definitely exciting news, my very first thought when reading this early this morning was, "will this affect Avon's no animal testing policy?" And the answer is resoundingly NO. We were assured on a webinar today that LG actually advocates against animal testing, but I wanted to see for myself, so I went to Google. And LG's website has a very clear statement:

"We plan to increase its appeal to global consumers by emphasizing our eco-friendly brand message and its participation in the no animal testing campaign and the protection of endangered species."

So, that makes me feel a lot better. Anything else, I can deal with. I just hope they clear up all the misconceptions out there once and for all.

This change could be a very good thing for Avon and Avon Representatives. You may think of LG as a tech company, with their cell phones, TVs, etc., but did you know it is Korea's leading consumer goods company, with strong market positions in cosmetics, personal care, and home care? The company actually owns 38 beauty brands, including belif and The History of Whoo. And, they purchased Avon Japan last year. According to Laurie Ann Goldman, New Avon's CEO, LG is not looking to make a lot of changes, and they are in it for the long term.

A little history: Three years ago, New Avon LLC (Avon North America) was formed when holding company Cerebrus Capital Management LP purchased the North American operations. All products in the USA, Canada, and Puerto Rico bearing the Avon name are products of Avon North America, which is a completely separate company from Avon Products, Inc. (also known as "Avon Worldwide.") Holding companies will purchase struggling companies to fix them up and then sell them at a profit (kind of like flipping a house). So, it makes perfect sense that they are now relinquishing New Avon to a company with a proven track record in the beauty industry.

This is nothing to be concerned about. Companies are bought and sold every day. Probably not much is going to change in the way we do business, but I look for some exciting new products to be coming down the pike. It will be an interesting year for sure!

If you're interested in becoming an Avon Representative, simply go to www.joyoflipstick.com and click on Become a Representative!