* LG Household says no longer considering Elizabeth Arden
* Elizabeth Arden announced restructuring efforts this week
* LG Household to continue pursuing other M&A deals
(Recasts and adds comment from analyst)
SEOUL, June 26 South Korea's LG Household &
Health Care Ltd said it is no longer interested in
acquiring Elizabeth Arden Inc after the U.S. cosmetics
firm announced this week it would embark on extensive
restructuring due to mounting losses.
LG Household, the No.2 firm in the South Korean cosmetics
market with brands such as Whoo and O Hui, is keen to expand its
product lines and reach and had said it was interested in
Elizabeth Arden in April.
"This at least nullifies the concern that if LG Household
went after Elizabeth Arden there is a risk of paying too much
for a struggling company," said Park Eun-kyung, an analyst at
"But LG Household is at a juncture where it needs to seek
future momentum through acquisitions, so if it's not Elizabeth
Arden, the company needs to answer the question of what's next."
LG Household said it would move on to look at other
opportunities that offered better value but declined to
elaborate. Previous acquisitions include Japanese cosmetics firm
Everlife and Canadian retailer Fruits & Passion.
Elizabeth Arden's shares shot up to trade 30 percent higher
a week after LG Household's expression of interest, and the U.S.
firm, known for its namesake perfume brand and skin care brands
such as Ceramide and Prevage, confirmed it was exploring
strategic alternatives in May.
But on Tuesday this week, Elizabeth Arden disappointed
investors who were hoping for a sale of the company, announcing
instead that it would exit low-return businesses and brands to
Its shares slumped in the wake of the announcement and now
trade lower than levels seen just before LG Household's
expression of interest.
Elizabeth Arden also sells celebrity fragrances such as
Justin Bieber and Taylor Swift.
(Reporting by Se Young Lee and Joyce Lee; Editing by Edwina