According to the Wall Street Journal:
Avon will transfer its Illinois plant to a French contract manufacturer.
After more than 100 years of making beauty products in the U.S., Avon is selling its last domestic factory to a French cosmetics manufacturer.
Fareva Group will take over production of lipstick, body lotion, face cream and other products at Avon’s factory and warehouse in Morton Grove, Ill., people familiar with the plan said. The contract manufacturer also will make private-label products for drugstore chain Walgreens Boots Alliance Inc. at the underutilized, 500,000-square-foot plant, one of the people said.
Financial terms couldn’t be learned. Current Avon employees are expected to keep their jobs as part of the ownership change, the person said. Avon employed 362 in Morton Grove in 2016, according to the northern Chicago suburb’s records.
The deal comes less than three years after New Avon LLC, formerly the North American arm of Avon Products Inc., AVP 1.23% split from the larger company as part of a deal with private-equity firm Cerberus Capital Management LP. Cerberus bought a 17% stake in the parent company and acquired 80% of New Avon, which separated the unprofitable division from Avon’s international business.
Avon, one of the nation’s biggest direct sellers with