April 26, 2019 11:16
LG Household and Health Care on Thursday said it acquired an American cosmetics company to expand its foothold in the U.S.
LG signed a deal to buy 100 percent stakes of private equity firm Cerberus Capital Management and beauty company New Avon for US$125 million.
New Avon is a privately held company of global beauty giant Avon Products, which has been in business for over 130 years.
With the acquisition of New Avon, which has sales networks in Canada, Puerto Rico and the U.S and earned total revenue of W700 billion last year, LG aims to explore new market opportunities after its success in China (US$1=W1,163).
"The U.S. is the world's largest market for beauty products, worth about W50 trillion a year," said an LG spokesman.
LG posted record sales of W1.87 trillion in the first quarter of this year, thanks to the huge success of its high-end cosmetics brands -- Whoo, Su:m and OHUI. Combined sales of these three brands reached W798.9 trillion, up 30.7 percent from the same period of last year.
"Overseas sales increased by 35 percent compared to a year ago. Our marketing strategy to focus on high-end products in China, instead of cheaper brands, worked well," the spokesman said.
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