KKR has acquired South Korean cosmetics packaging company Samhwa from alternative asset management firm TPG Capital Asia for 733 billion won ( US$528 million ).

Founded in 1977 as a mold development and manufacturing company, Samhwa has grown to become a leading cosmetic packaging supplier, providing comprehensive packaging solutions for the high-end cosmetics industry, serving more than 300 cosmetic brands that include prominent Korean and global luxury brands.

The Korean cosmetics industry continues to grow strongly, and the country now ranks among the world’s top three cosmetics exporters alongside France and the United States. Samhwa is one of the top cosmetic packaging companies in Asia, and among the top ten globally.

The company specializes in air-tight cushion packaging and airless pump technology and maintains an R&D centre that enables it to design bespoke products to meet client needs. Its in-house system covers end-to-end services including product development, manufacturing, assembly and inspection, and delivery.

“Samhwa is a prime example of a differentiated packaging supplier at the heart of the K-Beauty ecosystem. KKR’s investment underscores its focused and selective approach of supporting leading Korean businesses in their growth strategy, including global expansion,” says Hi Joo Hong, director of private equity at KKR. “We look forward to working with Samhwa's management team and employees, leveraging KKR’s global network, operational expertise, and investment experience to help Samhwa achieve its next phase of growth."

KKR is making this latest investment predominantly from its Asian Fund IV and K-Series. Past investments in the Korean market include Musinsa, SK E&S, Ecorbit, HD Hyundai Marine Solution, KCF Technologies, LS Automotive, and Oriental Brewery. 

Since investing in Samhwa in 2023, TPG has helped the company develop from a family-owned business to a leading cosmetic packaging supplier focusing on the premium products segment.

Says Scott ( Shin Won ) Yoon, business unit partner at TPG Capital Asia: “We are proud to have been part of Samhwa’s journey, building a strong platform that will enable sustained growth while creating value through driving new product innovation, as well as improving efficiencies in production, shipment and delivery planning. It has been a pleasure driving this phase of transformation for Samhwa.”