South Korean skincare and cosmetics manufacturer The Face Shop, a subsidiary of LG Household & Health Care, has inked an agreement to buy a plant in China.
The company will buy the 13,000-ton-a-year Guangzhou plant from U.S. beauty to personal care products company Avon Products for 79.3 billion won ($70.56 million).
The Face Shop will manufacture its own cosmetics products for sale locally and Avon products under an original equipment manufacturer arrangement at the facility.
Avon said the deal avails it with greater operational and financial flexibility, at the same time allowing it to benefit from LG Household’s local knowledge, products, research and development expertise and infrastructure.