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Avon to sell China manufacturing operations to LG Household unit

Avon Products Inc. said it plans to sell its manufacturing operations in Guangzhou, China, to cosmetics brand TheFaceShop Co. Ltd., a unit of LG Household & Health Care Ltd., for $44 million.

Both companies also reached a manufacturing and supply agreement, wherein the Guangzhou factory will manufacture products for Avon's Chinese business and other markets, as well as handle production for TheFaceShop.

According to Avon CEO Jan Zijderveld, the deal will help the company operate more efficiently "with a leaner, more agile global infrastructure."

The transaction, subject to customary local regulatory approvals, is expected to close by February.