SEOUL -- South Korea's LG Household & Health Care will purchase Tokyo-based cosmetics seller Avon Products for 10.5 billion yen ($96.3 million), marking its fourth acquisition in Japan.
Avon Japan, an offshoot of the American direct sales beauty company, will become a wholly owned subsidiary of LG Household under plans announced on Tuesday. The LG group's health and beauty arm is expanding its distribution network in the still-vibrant Japanese cosmetics market.
LG Household's first-quarter operating profit climbed 9% on the year to a record 283 billion won ($262 million) in results released on Tuesday. Sales for the three months ended March rose 7% to 1.65 trillion won.
Despite a slow recovery in Chinese tourists visiting South Korea, demand for high-end products was strong at home and abroad, the company said.
Avon Japan was sold to an affiliate of TPG Capital in 2010. Fellow U.S. investment firm Keystone Partners acquired it in 2016.