Avon's stock surges after deal to sell China manufacturing operations
Shares of Avon Products Inc. rallied 4.4% in premarket trade Tuesday, after the beauty products direct-selling company announced a deal to sell its China manufacturing operation, for net proceeds of $44 million. The buyer is LG Household & Health Care Ltd. subsidiary TheFaceshop Co. Ltd. Avon said it has entered into a manufacturing and supply agreement with TheFaceshop. "This agreement provides us with greater operational and financial flexibility, while allowing us to benefit from the local knowledge, world-class products, R&D expertise and infrastructure of internationally-recognized partners such as LG H&H," said Avon Chief Executive Jan Zijderveld. Avon's stock has lost 16.8% over the past 12 months, while the S&P 500 has slipped 7.2%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.