KKR acquires South Korean cosmetics packaging firm Samhwa for US$528M

SOUTH KOREA – KKR, a global investment firm, completed the acquisition of Samhwa, a leading South Korean cosmetics packaging company, for US$528 million from TPG. 

The deal, valued at 733 billion Korean won, marks a significant move in the rapidly growing K-beauty sector, where South Korea ranks among the world’s top three cosmetics exporters, alongside France and the United States.

Samhwa, established in 1977 as a mold manufacturer, has evolved into a key supplier of packaging solutions for over 300 high-end cosmetic brands, including L’Oréal, Estée Lauder, Chanel, and LVMH. 

The company specializes in innovative technologies like air-tight cushion packaging and airless pump systems, supported by a dedicated R&D center that designs customized products.

According to Samhwa’s CEO, Jun-bae Kim, the company aims to deepen its partnerships with global luxury brands. 

“We welcome KKR as our new investor as we embark on our next chapter of growth and innovation,” Kim said in a statement.

KKR’s director of private equity, Hi Joo Hong, emphasized the strategic importance of the acquisition. 

He noted that Samhwa’s expertise in premium packaging positions it as a vital player in the K-beauty ecosystem, with plans to leverage KKR’s global network for expansion. 

The acquisition aligns with KKR’s history of investing in South Korean businesses, such as fashion retailer Musinsa and energy provider SK E&S.

TPG, which acquired Samhwa in 2023 for approximately $300 million, transformed the company from a family-owned business into a global leader. 

Scott Yoon, a business unit partner at TPG Capital Asia, highlighted their role in enhancing Samhwa’s operations. 

He stated that TPG focused on driving product innovation and improving efficiencies in production and delivery, achieving an estimated 75% internal rate of return. 

Kim expressed gratitude for TPG’s support, noting that KKR’s operational expertise will further advance Samhwa’s innovation goals.

Recent industry developments indicate growing interest in sustainable packaging, with Samhwa well-positioned to meet new regulatory demands, such as the European Union’s Packaging and Packaging Waste Regulation, effective February 2025, which favors eco-friendly, mono-material systems. 

A report by industry analysts suggests Samhwa’s advanced dispensing technologies could attract more Western luxury brand partnerships, strengthening its global market presence. 

The company is projected to generate US$280 million in revenue and US$62 million in EBITDA for 2025, highlighting its robust financial performance and growth potential in the competitive cosmetics packaging sector.

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