LG Household & Health Care Ltd. completed the acquisition of New Avon, LLC from Cerberus Capital Management, L.P. and Avon Products, Inc..
August 15, 2019
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LG Household & Health Care Ltd. (KOSE:A051900) ("LG H&H") entered into a unit purchase agreement to acquire New Avon, LLC from Cerberus Capital Management, L.P. and Avon Products, Inc. (NYSE:AVP) for approximately $130 million on April 25, 2019. Pursuant to the transaction, LG H&H will acquire all of the outstanding Class A interests in New Avon, LLC, viz. the entirety of Cerberus' majority interest for approximately $100 million and Avon Worldwide's minority interest for $24.9 million in New Avon LLC. Avon will receive $24.9 million in cash for its 19.9% share. New Avon LLC will continue to license the right to use the Avon brand name in North America after the consummation of the transaction. The closing is subject to approval of offer by LG H&H's board, regulatory approvals in the United State, certain customary closing conditions and the expiration of the waiting period, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. As of April 25, 2019, transaction has been approved by the LG H&H Board of Directors. The transaction is expected to close on September 30, 2019. As on August 1, 2019 the deal is expected to close during the third quarter of 2019. Sara B. Zablotney, Benjamin M. Schreiner and Matthew Lovell of Kirkland & Ellis LLP acted as legal advisors to New Avon, LLC in this transaction. Robert Matlin, Jon Barron, Adam Tejeda, Rikki Sapolich, Matt Dicke, Allen Bachman, Mike Hinckle, Julia Jacobson, Jennifer Thiem, David Naidu, Matt Ball, Joanna Diakos, Jae Park, Steven Hill, Ken Knox and Bryan Cantrell of K&L Gates LLP acted as legal advisors to LG Household & Health Care Ltd. Spayne Lindsay & Co. acted as financial advisor to LG Household & Health Care Ltd.
LG Household & Health Care Ltd. (KOSE:A051900) completed the acquisition of New Avon, LLC from Cerberus Capital Management, L.P. and Avon Products, Inc. (NYSE:AVP) on August 16, 2019.
LG H&H Co Ltd, formerly LG Household & Healthcare Ltd, is a Korea-based company principally engaged in the manufacture of distribution of cosmetics. The Company operates its business through three segments. The Beautiful Segment which is engaged in the manufacture of skin care and make-up products, as well as healthy foods. The Healthy Segment which is mainly engaged in the manufacture of household goods, including oral, body, hair care products, household detergents, and all the related materials. The Refreshing Segment is mainly engaged in the manufacture of carbonated and non-carbonated beverages such as cola, juice, tea, coffee, and bottled water products.