KKR to acquire Korean beauty packaging firm Samhwa

Samhwa CI

Global private equity firm KKR has agreed to acquire Samhwa, a major South Korean cosmetics packaging company, for around 800 billion won ($582 million), investment banking sources said on Monday.

The deal was finalized through a share purchase agreement (SPA) in which Samhwa’s current owner TPG sold its entire stake to KKR. Major global PEFs including Blackstone and Carlyle also competed for the asset, but KKR secured exclusivity with its winning bid.

Founded in 1997, Samhwa specializes in manufacturing cosmetic containers and dispensers. Together with Yonwoo and Pum-Tech Korea, it dominates the domestic packaging market. The company is projected to post 280 billion won in revenue and 62 billion won in EBITDA in 2025.

TPG acquired Samhwa and four affiliated companies in January 2024 for around 300 billion won and managed to nearly triple its valuation within just 18 months. Including dividends and related returns, TPG is expected to realize proceeds of approximately 900 billion won, which translates to an internal rate of return (IRR) of 75 percent.

TPG focused on repositioning Samhwa from a general packaging manufacturer to a high-end dispenser powerhouse - branding it as the “K-beauty’s foundry.” The firm streamlined a previously complex, family-owned governance structure and recruited a new CEO and CFO with experience at LG Household & Health Care and Cosmax.

The firm also overhauled Samhwa’s product mix, reducing its dependence on low-margin bottles and shifting toward premium pump-based solutions. As a result, the company’s sales have grown more than 30 percent annually, with exports now accounting for nearly 70 percent of total revenue.

Samhwa serves major global beauty clients such as L’Oréal, Estée Lauder, Chanel, and LVMH - a key factor behind its strong growth potential relative to local competitors. Industry watchers view the transaction as a prime example of how global PEFs can create value by scaling mid-sized Korean manufacturers. Rather than focusing on consumer-facing K-beauty brands, the strategy centered on upgrading core ODM and packaging technologies proved decisive.