LG Household & Health Care has signed a definitive agreement with an affiliate of Cerberus Capital Management (Cerberus) and Avon Products (Avon Worldwide) to buy New Avon (Avon North America) for $125m.

The purchase price will be paid in cash.

LG H&H will buy Cerberus’ majority interest and Avon Worldwide’s minority interest in Avon North America.

The deal has secured approval of the LG H&H board of directors.

LG H&H is a consumer goods company in South Korea, which is one of the world’s largest beauty markets with over $13bn  in sales last year.

Currently, the South Korean firm distributes several brands in the US including belif and The history of Whoo.

Avon has an employee base and network of 250,000 sales representatives throughout North America.

This network will support LG H&H’s international growth plans.

Even under LG H&H’s ownership, Avon North America will continue its focus on product innovation, while bolstering its position as a social selling beauty company in the region.

Avon North America will stand to benefit from LG H&H’s R&D capabilities in cosmetics, personal care, fragrance, packaging and design.

LG Household & Health Care CEO Suk Cha said, “We recognise Avon North America’s strong brand, leading market position in the region, and talented employees and Representatives. Avon North America’s innovative social selling model builds deep connections with customers and we are excited to leverage this as we continue to expand. We look forward to building on Avon North America’s success to drive customer engagement and long-term growth in this market.”

Avon North America CEO Laurie Ann Goldman said: “LG H&H respects and admires our strong community of Representatives, and supports our mission to empower women through economic opportunity.

“We are thrilled to welcome our new partner, who shares our commitment to innovation, and our clear focus on putting customers first. We have appreciated our partnership with Cerberus over the last three years and their support as we strengthened the company and reset our path toward long-term success.”

The deal is expected to close on 30 September next year and is subject to some customary closing conditions, including receipt of regulatory approvals in the US.