The global private equity firm Kohlberg Kravis Roberts (KKR) has become the new owner of the domestic cosmetics packaging manufacturing corporation Samhwa.
According to the investment banking (IB) industry on the 4th, KKR recently acquired 100% of Samhwa's equity from TPG Capital Asia. The purchase price was reported to be approximately 733 billion won (about $528 million).
Samhwa is a cosmetics packaging manufacturer that started as Samhwa Mold Company in 1977. The company holds approximately 17% of the cosmetics packaging market share and recorded consolidated revenue of 186.8 billion won last year. Operating profit was reported to be 31.4 billion won.
KKR is said to have highly valued that Samhwa has positioned itself as a differentiated supplier of packaging in the K-beauty ecosystem. Currently, Samhwa supplies products to more than 300 cosmetics brands.
In particular, thanks to its overseas clients, including L'Oréal, Estée Lauder, Chanel, and LVMH, multiple global private equity firms such as Blackstone and Carlyle entered the bidding competition.
KKR stated, "Based on our global network, management expertise, and investment experience, we will work with Samhwa's management and employees to support the company in achieving its next stage of growth."
Meanwhile, TPG Capital Asia has seen more than double returns on its investment in Samhwa. It has been about 1 year and 8 months since acquiring Samhwa for 300 billion won in December 2023.