KKR acquires K-beauty packaging firm Samhwa in US$528M deal

KKR, a global investment company based in Korea, has purchased Samhwa, a cosmetics packaging company, for KRW733 billion (US$528 million) from TPG, also based in Korea. 

Samhwa provides comprehensive packaging solutions to more than 300 high-end cosmetic brands, including independent Korean and global luxury brands.

Jun-bae Kim, CEO at Samhwa, says: “We welcome KKR as our new investor as we embark on our next chapter of growth and innovation. We are well-positioned to achieve our ambition to be the partner of choice for major luxury brands globally, and as we continue to focus on delivering superior packaging solutions for the cosmetics industry.”

Hi Joo Hong, director of private equity at KKR, adds: “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.”

South Korea currently ranks among the world’s top three cosmetics exporters alongside France and the US. 

“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,” says Hong.

Value through product innovation

Samhwa began in 1977 as a family business and is now described by TPG as one of Asia’s top cosmetic packaging producers and among the top ten globally. 

Scott (ShinWon) Yoon, business unit partner at TPG Capital Asia, comments: “We are proud to have been part of Samhwa’s journey, building a 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. We would like to thank Jun-bae and the entire team at Samhwa for their dedication and commitment, and wish them continued success in the years to come.”

Samhwa’s Kim says: “We thank TPG for its partnership and support, and look forward to working with KKR, whose global network, operational knowledge, and strategic guidance will be invaluable as we continue to focus on innovation and quality that our customers and partners have come to expect.”