LG Household, a maker of consumer goods and beauty products based in Seoul, is acquiring New Avon LLC from private equity firm Cerberus Capital Management LP and former parent company Avon Products, which still held a minority interest in US $ 125 million in cash.

Last month, Natura had confirmed its interest in Avon’s North American business. If the transaction were completed, the acquisition would mean less domestic direct sales competition, where Avon is its largest competitor, potential growth in Latin America and gain in scale distribution channels. However, Natura would have to go into debt for the acquisition, as it did when it acquired The Body Shop, which is not well evaluated by investors. Accordingly, the company’s shares on Thursday (25) were up 9.54%, at R $ 49.05 after the announcement of the sale to LG H & H.

LG H&H is Korea’s leading consumer goods company, with strong market positions in all major categories including cosmetics, personal care and home care. The transaction was approved by the board of the Korean company.

The purchase of the iconic Avon brand, award-winning products, dedicated employee base and a network of 250,000 sales representatives throughout North America will support LG H & H’s international growth plans, the company said in a statement.

Under LG H&H’s ownership, Avon North America will continue its strategy of product innovation, while strengthening its position as the leading social selling beauty company in the region. Avon North America is expected to benefit from LG H&H’s R&D capabilities in cosmetics, personal care, fragrance, packaging and design.

In an unrelated transaction, Avon Products earlier this year sold its manufacturing operation in Guangzhou, China, to LG Household, and the companies entered a manufacturing and supply agreement.

The Korean company said it expects to complete the acquisition on Sept. 30.The transaction is expected to close on September 30, 2019 and is subject to certain customary closing conditions, including regulatory approvals in the U.S.