This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:22 p.m. on July 22, 2026.
EcoPro, a company specializing in producing cathode materials for secondary batteries, is pushing to expand its business into K-beauty manufacturing. It has recently jumped into the race to acquire Hwasung Cosmetics, a color cosmetics original design manufacturer (ODM), together with private equity fund (PEF) manager Korea Investment Private Equity (Hantu PE).
According to the investment banking (IB) industry on the 22nd, EcoPro(086520) formed an acquisition consortium with Hantu PE and Hwasung Cosmetics and made the shortlist. Hantu PE is expected to take the lead as the acquirer and hold management control, while EcoPro is likely to participate as a strategic investor (SI) and secure a future option (right of first refusal).
The assets for sale are about 70% of Hwasung Cosmetics equity held by Affirma Capital through special purpose company (SPC) Asterion Holdings and the entire equity of basic skincare ODM company NOWCOS. Samsung Securities and global IB Rothschild are serving as joint sell-side advisors and held a preliminary bid last month.
Hwasung Cosmetics, an ODM specializing in color cosmetics focused on point makeup such as eyebrow and eye shadow, started in 1994. Global beauty giants such as L'Oréal and Estée Lauder are major clients. It posted about 110 billion won in revenue last year and about 24 billion won in earnings before interest, taxes, depreciation and amortization (EBITDA).
The preliminary bid earlier drew strong interest, with five to six financial investors (FIs) and overseas SIs participating. The shortlist includes, in addition to the EcoPro–Hantu PE consortium, Macquarie Group and a Europe-based cosmetics company. The EcoPro–Hantu PE consortium is cited alongside Macquarie Group as a strong acquisition contender.
The cash-generating power of the cosmetics industry is cited as a reason EcoPro is eyeing a cosmetics ODM. With performance volatility rising due to a slowdown (chasm) in electric-vehicle battery demand, the plan is to secure a stable cash-generation base through K-beauty.
The fact that Hwasung Cosmetics and NOWCOS are cosmetics ODMs also positively influenced the push for the acquisition. While K-beauty brands may see performance swing with changing trends, ODMs that handle development and manufacturing face less performance volatility risk than brand operators.
Acquisitions of cosmetics ODMs by companies in unrelated industries have stood out recently. As the cosmetics ODM sector rides the K-beauty wave, securing both profitability and growth, it has emerged as a way to obtain new growth engines. A prime example is Seoyoung ENT of the Hitejinro group acquiring B&B Korea in 2024.
EcoPro's entry into the cosmetics industry is at a pre-official stage, and some say it remains to be seen whether it will lead to participation in the main bid. In particular, EcoPro's cash flow from operating activities in the first quarter of this year was a negative 146.6 billion won, worsening from a negative 79.4 billion won a year earlier, leaving limited financial leeway.
A source in the IB industry said, "Given K-beauty's popularity and Hwasung Cosmetics' earnings growth, the acquisition price is expected to easily exceed 300 billion won," adding, "Market attention is focusing on whether EcoPro will participate as the final bidder with Hantu PE in the main bid scheduled for next month."