LG H&H Sells Avon North America to Focus on K-Beauty and Wellness

LG H&H is drawing attention by selling its North American subsidiary, the Avon Company, to Stratford Worldwide, aiming to reshape its North American operations around retail and digitalization.

The company announced this transaction to refocus its North American business on 'retail and digital-based K-Beauty and wellness brands'. As part of this process, LG H&H USA, Inc. signed a stock purchase agreement on the 24th, transferring 100% of its subsidiary's shares to Stratford Worldwide.

Stratford Worldwide is affiliated with Regent, a global investment firm operating Avon International. The exact sale price will be determined at the time of deal closure.

Since acquiring Avon North America's business rights in April 2019, LG H&H has been striving to enhance its market presence and competitive edge. This transaction is part of a global portfolio restructuring aimed at realigning the company's priorities in line with rapidly changing consumer purchasing patterns and distribution environments, concentrating resources on high-potential brands and channels.

Moving forward, LG H&H plans to expand consumer touchpoints in retail and digital channels, focusing on rapidly growing brands such as Dr.Groot, Belif, and CNP, and to further develop its K-Beauty and wellness brand portfolio.

With a vision of being a 'Science-driven Beauty & Wellness Company', LG H&H is prioritizing strengthening the competitive edge of existing flagship brands while restructuring its business portfolio.

Regent, having acquired Avon International in January, currently operates Avon’s businesses in major markets excluding North America—specifically in Europe, Asia, and Africa. Once this transaction is finalized, Avon North America will be managed under the same leadership as Avon International, planning to enhance collaboration and synergy in product development, marketing, and social selling.

Michael A. Reinstein, Chair of Regent, remarked that “Avon has symbolized opportunity, independence, and connection among people for 140 years,” asserting that LG H&H has demonstrated modernization while preserving Avon’s legacy. He emphasized that Avon North America, aligned with the International business, will create new growth opportunities through shared strategies and product synergies.

An LG H&H representative stated that the decision reflects a focus on brand-driven growth strategies in North America while seeking new growth opportunities based on the social selling business model of Avon. The company intends to accelerate growth by concentrating resources and capabilities on competitive beauty and wellness brands centered around retail and digital channels.

Additionally, LG H&H's North American subsidiary plans to convert a loan made to Avon into equity as part of the internal financial relationship resolution, ensuring that there will be no changes to ownership percentages nor cash contributions stemming from the conversion.