KKR Acquires Korean Cosmetics Packaging Firm Samhwa for $577 Million, Tripling TPG’s Return

Global private equity firm KKR has agreed to acquire Samhwa Co., a Korean manufacturer of cosmetic containers and dispensers, for approximately KRW 800 billion (USD 577 million), delivering nearly a 3x return for current owner TPG. TPG had acquired Samhwa in December 2023 for around KRW 300 billion and is expected to achieve an internal rate of return (IRR) of approximately 75% in less than two years.

Founded in 1977 as a mold manufacturer, Samhwa has evolved into one of South Korea’s top three cosmetics packaging companies, with a market share of roughly 17%. The company holds global competitiveness in dispenser technologies, including leak prevention and spray control.

Since its acquisition, TPG has repositioned Samhwa from a generic plastic bottle maker to a specialist in high-value dispensing solutions. It streamlined the corporate structure, overhauled accounting and inventory systems, and appointed industry veteran Junbae Kim—formerly of LG Household & Health Care and Cosmax—as CEO. These strategic changes quickly bore fruit, with operating profit rising from KRW 14 billion to KRW 31.4 billion.

Samhwa now derives about 60% of its revenue from global beauty giants like L’Oréal, Estée Lauder, and LVMH, highlighting its low dependence on the domestic market and strong growth potential. In 2024, TPG conducted a KRW 285 billion recapitalization and began the process of a full exit, with KKR ultimately winning the bid over other major private equity firms including Blackstone and Carlyle.

Industry observers view the deal as more than a short-term gain. It’s considered a textbook example of private equity uncovering undervalued assets, driving business transformation, and bridging them with global capital—especially notable amid a sluggish Korean mid-market M&A environment.