This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:04 p.m. on Jun. 12, 2026.
As Hwasung Cosmetics, a color cosmetics ODM company, hit the market, the preliminary bidding drew strong interest. The sell-side is expected to select a shortlist of qualified preliminary candidates as early as early next week and notify each company.
According to the investment banking (IB) industry on the 12th, Affirma Capital and sale managers Samsung Securities and Rothschild closed preliminary bidding for the sale of Hwasung Cosmetics on the 5th. It is understood that five to six bidders, including domestic and overseas financial investors (FI) and strategic investors (SI), participated in the preliminary bidding and submitted letters of intent (LOIs).
Samsung Securities and Rothschild plan to select the shortlist as early as the 15th and then begin preliminary due diligence and the main bidding process.
The assets for sale are a 70% equity stake in Hwasung Cosmetics held by Affirma Capital Managers Korea through special-purpose company (SPC) Asterion Holdings and a 100% stake in basic cosmetics ODM company NOWCOS. Because Hwasung Cosmetics is strong in color products and NOWCOS is strong in basic cosmetics, the sell-side judged that selling the two companies together would be advantageous in boosting corporate value.
In the market, there has been talk that the sale price could exceed 300 billion won. However, with the preliminary bidding drawing more interest than initially expected, the view is growing that the price tag will rise further.
Hwasung Cosmetics' revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) last year were about 110 billion won and 24 billion won, respectively. NOWCOS also posted about 70 billion won in revenue last year. If the strong exports of K-beauty corporations and positive investor sentiment toward cosmetics ODM companies are reflected, an EBITDA multiple of more than 10 times could be applied, according to the industry.
Affirma Capital secured management control in 2019 by acquiring a 70% equity stake in Hwasung Cosmetics that had been held by founder and former CEO Ryu Gyeong-hun. The transaction size at the time was said to be in the range of 140 billion to 160 billion won. In 2022, it expanded its product portfolio to basic cosmetics by acquiring NOWCOS through a bolt-on approach. More recently, it completed housekeeping of the governance structure for a package sale by making NOWCOS a wholly owned subsidiary through a tender offer and a comprehensive share exchange with cash consideration.
Industry watchers say overseas bidders joined the preliminary bidding because of Hwasung Cosmetics' export base and global client network. Hwasung Cosmetics is regarded as a company with clear competitiveness in color products such as eye makeup. It counts not only domestic indie brands but also overseas luxury brands such as the Estée Lauder group as clients, which reduces reliance on any particular market and is cited as an investment attraction.
However, some note that whether the transaction is finalized will depend on how much the seller and bidders can narrow the valuation gap. Affirma Capital previously attempted to sell Hwasung Cosmetics but halted the transaction after failing to bridge the gap with bidders.