KKR’s Strategic Bet on K-Beauty Supply Chain Champion Samhwa

In the ever-evolving landscape of global beauty, private equity firms are increasingly turning their attention to the unsung heroes of the industry: the high-margin, behind-the-scenes innovators that power the supply chains of household-name brands. KKR’s recent acquisition of Samhwa, a South Korean cosmetics packaging specialist, for $577 million, epitomizes this trend. The deal, which follows TPG’s transformative 2023 investment, underscores a broader strategy by private equity to capitalize on undervalued industrial champions in the beauty ecosystem.

From Generic Plastics to Precision Engineering

Samhwa’s journey from a mid-tier plastics manufacturer to a global leader in cosmetics delivery systems is a case study in strategic repositioning. When TPG acquired the company in early 2023 for approximately $220 million, it identified a critical opportunity: Samhwa’s proprietary dispensing pump technology, which offered high margins and a niche in the beauty sector’s demand for precision packaging. Under TPG’s ownership, the firm streamlined Samhwa’s corporate governance, consolidated its fragmented affiliate structure, and appointed a professional management team, including CEO Kim Jun-bae. These moves catalyzed a near-threefold return for TPG, with an estimated internal rate of return (IRR) of 75% [1].

KKR’s acquisition, which outmaneuvered global rivals like Blackstone and Carlyle, reflects confidence in Samhwa’s future. The company’s client base includes industry giants such as Estée Lauder, LVMH, and L’Oréal, with 60-70% of its revenue derived from international markets. By 2025, Samhwa is projected to achieve revenue of 280 billion won ($198 million) and EBITDA of 62 billion won ($43.8 million) [4]. KKR’s expertise in global expansion and operational excellence positions it to further scale Samhwa’s capabilities, particularly in emerging markets where K-beauty’s influence is growing.

A Broader Trend: Private Equity’s Supply Chain Play

Samhwa’s story is not an outlier. Private equity’s appetite for high-margin, innovation-driven players in the beauty supply chain has surged since 2020. Between 2023 and 2025, private equity accounted for 62% of beauty and personal care deals, up from 45% in 2019 [3]. This shift is driven by several factors: the rise of digitally native independent brands, the demand for sustainable and ethically sourced ingredients, and the convergence of beauty and healthcare through cosmeceuticals.

For instance, L Catterton’s acquisition of Kiko Milano in April 2024 highlighted the firm’s focus on brands with accessible pricing and loyal customer bases. Similarly, TSG Consumer Partners’ July 2025 purchase of Phlur, a U.S. fragrance brand, signaled continued interest in digital-native brands. Beyond brands, private equity is also targeting Contract Development and Manufacturing Organizations (CDMOs) and Contract Manufacturing Organizations (CMOs), which provide critical infrastructure for scaling beauty products. Fremman Capital’s acquisition of Innovative Beauty Group in March 2024, a firm offering end-to-end product development services, exemplifies this trend [5].

The Future of Beauty Supply Chains

The global beauty and personal care market, valued at $545 billion in 2023, is projected to reach $858 billion by 2030, with CDMOs/CMOs growing at a compound annual growth rate (CAGR) of 6.5% [2]. This expansion is fueled by near-shoring trends, biosourcing, and the demand for eco-friendly packaging. Private equity firms are uniquely positioned to capitalize on these dynamics by investing in companies that offer both operational scalability and technological differentiation.

Samhwa’s dispensing pumps, for example, align with the industry’s push for sustainable packaging. Its ability to innovate in materials and design—such as reducing plastic waste while maintaining product efficacy—resonates with both consumers and regulators. KKR’s acquisition strategy, therefore, is not merely a bet on a single company but a wager on the broader transformation of the beauty supply chain.

Conclusion

KKR’s $577 million investment in Samhwa is emblematic of a new era in private equity’s approach to the beauty sector. By targeting undervalued industrial champions like Samhwa, firms are leveraging their operational expertise to unlock value in the behind-the-scenes innovators that power global beauty brands. As the industry continues to prioritize sustainability, personalization, and technological advancement, the role of private equity in shaping the supply chain will only grow. For investors, the lesson is clear: the next frontier of beauty’s growth lies not in the products on store shelves, but in the invisible engines that bring them to life.

**Source:[1] TPG's sale of cosmetics packaging specialist Samhwa to ... [https://www.kedglobal.com/beauty-cosmetics/newsView/ked202507210008][2] Private Equity Sees Shining Opportunity in Beauty Contract ... [https://beautymatter.com/articles/private-equity-opportunity-beauty-contract-manufacturing-development][3] Beauty M&A and funding 2025: Diverse buyers vying for a seat at the vanity table [https://heligangroup.com/blog/beauty-manda-and-funding-2025][4] KKR to buy Korean cosmetics packaging firm for 800b won [https://www.ainvest.com/news/kkr-buy-korean-cosmetics-packaging-firm-800b-won-maeil-2507][5] Private Equity Sees Shining Opportunity in Beauty Contract ... [https://beautymatter.com/articles/private-equity-opportunity-beauty-contract-manufacturing-development]