07.18.23
Texas-based private equity firm TPG Inc. is poised to fully acquire Samhwa Co., a South Korean cosmetic packaging supplier to global beauty companies like L'Oréal S.A., the Estée Lauder Companies Inc. and Chanel, according to banking sources.
TPG has agreed to buy a 100% stake in Samhwa and controlling shares in some major affiliates, held by Chief Executive Cho Seong-hwan, Cho’s father and Samhwa founder Cho Hwi-cheol and affiliated persons.
The deal, which is valued in the mid-$230 million range, would mark TPG's first investment in a Korean firm since 2020.
Samhwa is expected to partner with global cosmetics firms within TPG’s portfolios, such as Anastasia Beverly Hills LLC that is best known for its eyebrow products. The private equity firm acquired a 38% stake in Anastasia in 2018.
CEO Cho will reportedly buy a minority stake in Samhwa again as the products container manufacturing business can generate steady cash flow, while cosmetics brand operators face ups and downs amid economic fluctuations or changes in beauty industry trends.
Among TPG’s Korean portfolio companies are mobility platform Kakao Mobility Co., luxury vinyl tiles maker Nox Corp. and dietary supplement maker Health Balance.
TPG has agreed to buy a 100% stake in Samhwa and controlling shares in some major affiliates, held by Chief Executive Cho Seong-hwan, Cho’s father and Samhwa founder Cho Hwi-cheol and affiliated persons.
The deal, which is valued in the mid-$230 million range, would mark TPG's first investment in a Korean firm since 2020.
Samhwa is expected to partner with global cosmetics firms within TPG’s portfolios, such as Anastasia Beverly Hills LLC that is best known for its eyebrow products. The private equity firm acquired a 38% stake in Anastasia in 2018.
CEO Cho will reportedly buy a minority stake in Samhwa again as the products container manufacturing business can generate steady cash flow, while cosmetics brand operators face ups and downs amid economic fluctuations or changes in beauty industry trends.
Among TPG’s Korean portfolio companies are mobility platform Kakao Mobility Co., luxury vinyl tiles maker Nox Corp. and dietary supplement maker Health Balance.