This article was displayed on the ChosunBiz MoneyMove (MM) site at 5:11 p.m. on May 21, 2026.
Private equity fund (PEF) manager Affirma Capital is pushing to sell Hwasung Cosmetics, a color cosmetics original design manufacturer (ODM), overseas. Global investment bank (IB) Rothschild has joined as a sell-side adviser, accelerating a cross-border deal by recruiting overseas buyers.
According to the investment banking (IB) industry on the 21st, Affirma Capital recently selected Samsung Securities and Rothschild as sell-side advisers for Hwasung Cosmetics and began accepting letters of intent (LOIs). In early last month, it also selected global PEF managers as potential buyers and sent out teaser letters.
The assets for sale are approximately 70% of Hwasung Cosmetics' management control equity that Affirma Capital holds through Asterion Holdings and the entire stake in NOWCOS, an ODM specializing in basic skincare. As part of a bolt-on strategy for Hwasung Cosmetics, Affirma Capital acquired NOWCOS in 2022.
An overseas package sale bundling Hwasung Cosmetics and NOWCOS is the base scenario. It was initially known that Samsung Securities would run the sale alone, but Rothschild has been added. Samsung Securities is overseeing the overall sale process, while Rothschild is in charge of sourcing overseas buyers.
Affirma Capital has also identified overseas strategic investors (SIs) as key bidders. It is leveraging strong global investor interest in the K-beauty ODM industry. Affirma Capital sought to sell Hwasung Cosmetics once in 2024 but halted due to a valuation gap.
The fact that Hwasung Cosmetics' major clients are global cosmetics brands also laid the groundwork for an overseas sale. In practice, the color brands of global beauty giants Estée Lauder and L'Oréal are both clients of Hwasung Cosmetics, and 70% of all clients are overseas brands.
The sale price is expected to easily exceed 300 billion won. Considering the popularity of K-beauty and the earnings growth of Hwasung Cosmetics and NOWCOS, an earnings before interest, taxes, depreciation and amortization (EBITDA) multiple of more than 10 times is estimated to be possible. Last year, Hwasung Cosmetics' EBITDA was tallied at 24 billion won.
If the sale goes through, Affirma Capital is expected to recoup more than 100 billion won in investment. Affirma Capital acquired 70% equity in Hwasung Cosmetics for about 160 billion won in 2019. It invested around 30 billion won to acquire NOWCOS, pouring in a total of roughly 200 billion won.
A source in the IB industry said, "They set an overseas sale as the primary target, and Samsung Securities has directly moved to pursue a joint sale with global IB Rothschild, which is headquartered in the United Kingdom," adding, "Buoyed by the global popularity of K-beauty, interest from overseas buyers is strong."