This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:32 p.m. on June 25, 2026.
The sale of color cosmetics original design manufacturing (ODM) company Hwasung Cosmetics is proceeding smoothly. Three to four bidders that participated in the preliminary auction made the shortlist of qualified preliminary candidates.
According to the investment banking (IB) industry on the 25th, Affirma Capital and sale managers Samsung Securities and Rothschild recently selected three to four firms for the Hwasung Cosmetics acquisition shortlist and notified each of them. In the preliminary bidding on the 24th of last month, five to six domestic and overseas financial investors (FI) and strategic investors (SI) submitted letters of intent (LOI), signaling strong interest.
The assets for sale are a package combining 70% equity in Hwasung Cosmetics held by Affirma Capital Managers Korea through special purpose company (SPC) Asterion Holdings and 100% equity in basic skincare ODM company NOWCOS. The strategy is to enhance corporate value by selling Hwasung Cosmetics, strong in color products, together with NOWCOS, specialized in basic skincare. Affirma Capital recently completed governance streamlining for a package sale by making NOWCOS a wholly owned subsidiary through a tender offer and a cash-settled comprehensive stock exchange.
Hwasung Cosmetics is regarded as a company with clear competitiveness in color products such as eye makeup. Its low reliance on any single market, having secured not only domestic indie brands but also overseas luxury brands such as the Estée Lauder group as clients, is cited as an investment appeal. Last year, Hwasung Cosmetics posted sales of about 110 billion won and earnings before interest, taxes, depreciation and amortization (EBITDA) of 24 billion won. NOWCOS also recorded sales of about 70 billion won last year.
The market has long discussed the possibility that Hwasung Cosmetics could fetch more than 300 billion won. Given robust exports in the K-beauty segment and positive investor sentiment toward cosmetics ODM companies, the industry view is that applying a multiple of more than 10 times EBITDA is not unreasonable.
Affirma Capital secured management control in 2019 by acquiring 70% equity in Hwasung Cosmetics from founder and former CEO Ryu Kyung-hoon for 140 billion to 160 billion won. In 2022, it expanded its product portfolio by acquiring NOWCOS as a bolt-on.
However, a previous attempt to sell Hwasung Cosmetics was halted after the gap in price expectations with the buyer could not be narrowed. Industry officials said whether the deal closes this time also hinges on price negotiations between the two sides.