Yesterday, according to report, global private equity firm TPG has finalized the sale of Samhwa, a leading South Korean cosmetics packaging specialist, to KKR for approximately 800 billion won ($577 million), marking one of the standout mid-cap private equity exits in the country this year.
The deal comes less than two years after TPG acquired Samhwa and four affiliated companies in January 2023 for around 300 billion won ($216 million). Through strategic restructuring and a renewed product focus, TPG transformed the business, unlocking significant value and achieving an estimated internal rate of return (IRR) of around 75%. Including dividends and capital returns, the U.S.-based investor is believed to have nearly tripled its original investment.
Samhwa, founded in 1977, is one of South Korea’s top three manufacturers of cosmetics dispensers and bottles, alongside Yonwoo Co and Pumtech Korea Co. While domestic competitors rely heavily on local giants like LG Household & Health Care and Amorepacific, Samhwa has carved out a global client base. Approximately 60% of its revenue now comes from international beauty leaders including Estée Lauder, LVMH, La Prairie, and L’Oréal. It also counts Korean brands such as Dr.Jart+, Clio Cosmetics, and AHC among its customers.
Samhwa is expected to post 62 billion won ($44.7 million) in EBITDA on sales of 280 billion won ($202.1 million) this year.
