South Korean cosmetics and household goods maker LG Household & Healthcare says an affiliate will buy a Japanese cosmetics firm for ¥10.5 billion (US$97.6 million).
Ginza Stefany Inc, based in Japan, will take a 100 per cent stake of Avon Products, founded in 1968.
The company’s sales reached KRW100 billion ($93 million) in it latest fiscal year.
The acquisition is the Korean cosmetics giant’s latest move to strengthen its foothold in Japan after buying Ginza Stefany in 2012 and Everlife the following year, reports Yonhap News Agency.
“Based on Avon’s credibility in Japan and its five decades of relationships with local companies, LG Household & Healthcare would like to overcome possible obstacles in expanding business there,” says the company.
Meanwhile, LG has had record earnings for this year’s first quarter. Its new profit of KRW196.4 billion was 8.8 per cent up from a year earlier. Sales rose 6.5 per cent to reach KRW1.7 trillion, and operating profit was up 9.2 per cent to KRW284 billion.
On the back of the robust earnings, the company says it will invest KRW389.3 billion by March 2020 to expand its production lines and build a logistics centre in Cheongju, central South Korea.