SEOUL—South Korean cosmetics firm LG Household & Healthcare Ltd. said Thursday it is no longer considering Elizabeth Arden Inc. as a potential acquisition target as it seeks to expand overseas.

"We want to find a better alternative that will help drive long-term growth in corporate value," LG Household & Healthcare said. In April, the company expressed interest in Elizabeth Arden, bolstering the U.S. company's stock price.

The LG Group affiliate, which is one of the country's top cosmetics vendors, cited planned restructuring of Elizabeth Arden as a reason behind its decision to end its interest in the company.

Earlier this week, Elizabeth Arden said its board approved cost cuts that include plans to exit some unprofitable businesses and fragrance license agreements.

It said the restructuring plan, which comes after a continued deterioration in profitability, will include the discontinuation of some products, workforce reductions and the closing of its Puerto Rico affiliate.

In addition to cosmetics, Elizabeth Arden makes high-end skin-care products and fragrances.

LG Household & Healthcare is well-known locally for offering a number of cosmetic brands, including O Hui and the Face Shop. It makes a variety of other consumer goods, including detergent and shampoo.

The company, which reported 128.3 billion won ($125.8 million) in operating profit on sales of 1.13 trillion won in the first quarter, has been seeking to boost its presence overseas with its cosmetics brands, particularly in markets like China, Japan, Southeast Asia and South America.

Write to Min-Jeong Lee at