Avon Products has signed a definitive agreement to sell its beauty manufacturing operation in Guangzhou to TheFaceShop.

TheFaceshop is a subsidiary of South Korean consumer goods and beauty company LG Household & Health Care (LG H&H).

Subject to customary local regulatory approvals, the deal is scheduled to close next month and Avon will receive net proceeds of $44m.

Avon Products CEO Jan Zijderveld said: “This transaction is a significant step forward in our efforts to ‘Open Up Avon’ by operating more efficiently, with a leaner, more agile global infrastructure.

“We will be better positioned to capture the significant opportunity in China and the wider Asian market.”

“This agreement provides us with greater operational and financial flexibility, while allowing us to benefit from the local knowledge, world-class products, research and development expertise and infrastructure of internationally-recognised partners such as LG H&H.

“By operating with a local structure that fits our purpose, we will be better positioned to capture the significant opportunity in China and the wider Asian market.”

Avon has a wide portfolio of brands that include ANEW, Avon Color, Avon Care, Skin-So-Soft and Advance Techniques. The company sells its products through around six million Avon sales representatives.

LG Household & Health Care CEO Suk Cha said: “Our past interactions with Avon provide us a sound understanding of its brand power and global reach, and we look forward to continuing our relationship with Avon as we both explore ways to grow our product lines, bring desirable products to market faster, and each accelerate our growth across Asia.”