LONDON, April 25, 2019 /PRNewswire/ -- Avon
Products, Inc. (NYSE: AVP) ("Avon Worldwide"), a globally
recognised leader in direct selling of beauty products, today
commented on the announcement by New Avon LLC ("Avon North
America"), that it has entered into an agreement to be acquired by
LG Household & Health Care Ltd. (LG H&H).
In March 2016 Avon's North
American business was separated into a privately-held company â€"
New Avon â€" as a result of a strategic partnership transaction
between Avon Worldwide and an affiliate of Cerberus Capital
Management, L.P. ("Cerberus"). Avon North
America is majority-owned and managed by Cerberus. Avon
Worldwide retained a minority interest in Avon North America which
LG H&H will acquire as part of its transaction.
Jan Zijderveld, CEO of Avon
Worldwide, said "We have built a strong relationship with LG
H&H and know them to be a great partner. We believe this
transaction is a testament to LG's belief in the strength of Avon's
brand and business model, and are excited to see the progress that
Avon North America makes as part of LG H&H. At Avon Worldwide,
we remain focused on executing our strategy to 'Open Up Avon.' We
are operating with urgency as we renew our focus on our
Representatives, reboot direct selling, simplify our operations and
digitise the business. We are seeing signs that our efforts are
taking hold and are confident that we are on the right path to
returning to growth and driving value for our shareholders."
Chan W. Galbato, Chief Executive
Officer of Cerberus Operations and Advisory Company, LLC and
Non-Executive Chairman of Avon Worldwide, said, "Avon is a leading brand in the global beauty
business and we are pleased with the consistent progress Avon
Worldwide is making to become the leading digital social selling
beauty company. The Board and management team are committed to, and
excited about, the opportunities that lie ahead to leverage
Avon's rich history and strong
foundation to drive the next chapter. Cerberus is committed to the
'Open Up Avon' strategy and to Avon Worldwide's return to
growth."
The transaction between the separate Avon North America business
and LG H&H has no impact on Avon Worldwide's current operations
or strategy. Further, this transaction is unrelated to Avon
Worldwide's previously announced sale of its beauty manufacturing
operation in Guangzhou, China to a
subsidiary of LG H&H, and the subsequent manufacturing and
supply agreement, which was completed in February, 2019.
Today, Avon Worldwide operates in over 50 countries with
millions of independent Representatives, with leading market
positions in Argentina,
Brazil, Mexico, Russia and the
Philippines. Avon Worldwide continues to aggressively pursue
and make progress on its strategy to 'Open Up Avon', unveiled in
September 2018. The strategy is
designed to renew Avon Worldwide's focus on its Representatives,
simplify operations, modernise the brand and digitise the business,
while restoring the competitiveness and cost discipline.
About Avon Products, Inc. (Avon Worldwide)
For 130
years Avon has stood for women:
providing innovative, quality beauty products which are primarily
sold to women, through women. Millions of independent sales
Representatives across the world sell iconic Avon brands such as
Avon Color and ANEW through their social networks, building their
own beauty businesses on a full- or part-time basis.
Avon supports women's empowerment,
entrepreneurship and well-being and has donated over $1billion to women's causes through Avon and the Avon Foundation. Learn more
about Avon and its products at
www.avonworldwide.com. #Stand4Her
Forward-Looking Statements
This press release
contains "forward-looking statements" that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including statements relating to the Company's
transformation plan, its business strategy and future growth.
Because forward-looking statements inherently involve risks and
uncertainties, actual future results may differ materially from
those expressed or implied by such forward-looking
statements. These risks and uncertainties include, but are
not limited to, the possibility of business disruption, competitive
uncertainties, and general economic and business conditions in
Avon's markets as well as the
other risks detailed in Avon's
filings with the Securities and Exchange Commission. Avon undertakes no obligation to update any
statements in this press release for changes that happen after the
date of this release
INVESTORS:
Amy Greene,
Vice President, Investor Relations, Avon Products, Inc.
(US) + 001 212 282 5320
Email: amy.greene@avon.com
MEDIA:
Natalie Deacon,
Executive Director Communications, Avon Products, Inc.
(UK) + 44(0) 7725 150853
Email: media.enquiries@avon.com /
natalie.deacon@avon.com
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SOURCE Avon Products, Inc.