This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:15 p.m. on Mar. 18, 2026.
Domestic private equity fund (PEF) manager Affirma Capital is moving in earnest to sell Hwasung Cosmetics and NOWCOS. It plans to begin the pre-marketing process by sending a teaser letter in early next month. As NOWCOS has recently pursued a cash-delivered share exchange for voluntary delisting, the transaction could be completed as early as the second half of this year.
According to the investment banking (IB) industry on the 18th, Affirma Capital recently prepared a draft teaser letter for the sale of management control of Hwasung Cosmetics and NOWCOS, and is coordinating details with sell-side advisor Samsung Securities. The sell side has selected about 20 potential buyers and plans to send the teaser letter as early as early next month.
Affirma Capital set a "package sale" of the two companies as its base scenario. Since the very rationale for acquiring NOWCOS was a bolt-on strategy to create synergy with Hwasung Cosmetics, it believes presenting an integrated business portfolio is advantageous for maximizing corporate value. However, because some buyers expressed interest in acquiring individual assets during preliminary contact (tapping), it has also left open the possibility of a split sale.
Hwasung Cosmetics has continued strong growth since the COVID-19 pandemic. Last year's revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) are said to have been about 110 billion won and 24 billion won, respectively. The EBITDA margin is around 22%. Compared with the time of Affirma Capital's acquisition in 2019, the scale has more than doubled. Versus 2024 results, they rose 20% and 22%, respectively.
NOWCOS, listed on the KONEX market, is currently in the final stages of voluntary delisting. Affirma Capital accelerated its equity stake through a combination of a tender offer and on-market purchases. After the tender offer, its stake rose from 69.78% to 95.02%, and it then conducted on-market purchases at the same price (8,300 won), expanding the stake to 97.21% as of the previous day. It is now at the stage of clearing out the remaining minority shareholders' stakes through a comprehensive share exchange with cash delivery. NOWCOS posted about 70 billion won in revenue and 3.1 billion won in operating profit last year.
Hwasung Cosmetics is a color cosmetics original design manufacturing (ODM) corporation founded in 1994. Affirma Capital secured management control in June 2019 by acquiring a 70% equity stake for about 160 billion won. It then brought skincare-focused NOWCOS in as a bolt-on to expand the product portfolio. NOWCOS owns raw material subsidiary Beautience, establishing vertical integration spanning raw materials, production and containers.
The industry believes that, given strong K-beauty exports and earnings growth, an EBITDA multiple of more than 10 times could be applied. On that basis, Hwasung Cosmetics' corporate value is estimated to exceed 200 billion won. Considering the typical sale process of a teaser letter followed by a preliminary bid and a main bid, the deal-closing timing is expected in the second half of this year.