Key Takeaways
- • Macquarie PE signed a definitive agreement to acquire South Korean cosmetics manufacturers Hwasung Cosmetics and Nowcos for approximately ₩300 billion ($216.6 million), representing a consolidation of K-beauty manufacturing assets under global private equity ownership.
- • The transaction covers Affirma Capital's 70% stake in Hwasung Cosmetics and 100% stake in Nowcos, with Macquarie PE planning to subsequently acquire the remaining 30% founder stake held by Ryu Kyung-hoon and other shareholders.
- • Affirma Capital, which acquired Hwasung Cosmetics in 2019 and added Nowcos through a bolt-on acquisition in 2022, has now recovered its investment after a seven-year holding period, demonstrating successful portfolio execution in the K-beauty sector.
- • The deal underscores a broader trend of global private equity firms—including KKR and CVC Capital—expanding investment beyond K-beauty brands into manufacturing and distribution infrastructure, positioning Macquarie PE to build an integrated platform combining color cosmetics and skincare capabilities.
- • Samsung Securities and Rothschild served as sell-side advisors on the transaction, which closed approximately one month after Macquarie PE was selected as the preferred bidder.
Summary
Macquarie PE, the private equity arm of Australia-based Macquarie Asset Management, has completed its acquisition of two South Korean cosmetics manufacturers, Hwasung Cosmetics and Nowcos, for approximately ₩300 billion ($216.6 million). The share purchase agreement was signed on September 18, 2026, concluding a competitive bidding process that positioned Macquarie as the preferred buyer among multiple qualified bidders.
The transaction structure reflects a staged acquisition approach. Macquarie PE acquired Affirma Capital's 70% controlling stake in Hwasung Cosmetics and its 100% stake in Nowcos, with plans to acquire the remaining 30% stake in Hwasung Cosmetics held by founder Ryu Kyung-hoon and other shareholders at a subsequent date. This structure preserves founder involvement while providing Affirma Capital with a clear exit mechanism.
For Affirma Capital, the transaction represents a successful conclusion to its seven-year investment thesis in K-beauty manufacturing. The firm originally acquired Hwasung Cosmetics in 2019 and executed a bolt-on acquisition strategy by adding Nowcos in 2022, building a diversified portfolio spanning color cosmetics and basic skincare products. The deal demonstrates recovery of capital with value creation across the investment period.
Macquarie PE's acquisition strategy focuses on combining the two entities to establish a vertically integrated K-beauty manufacturing platform. Hwasung Cosmetics is positioned as a leader in color cosmetics, while Nowcos specializes in basic skincare formulations, allowing Macquarie to create complementary operational and commercial capabilities. Samsung Securities and Rothschild acted as sell-side advisors, facilitating the transaction execution.
The deal reflects a broader macrotrend in global private equity capital allocation toward K-beauty infrastructure assets. Recent comparable transactions include KKR's acquisition of Samhwa and CVC Capital's investment in Silicon2, indicating that international PE firms are increasingly pursuing manufacturing and distribution assets alongside brand-level investments. This shift reflects growing confidence in South Korea's cosmetics manufacturing ecosystem and the strategic value of secured manufacturing capacity for the accelerating global K-beauty market.
The transaction structure reflects a staged acquisition approach. Macquarie PE acquired Affirma Capital's 70% controlling stake in Hwasung Cosmetics and its 100% stake in Nowcos, with plans to acquire the remaining 30% stake in Hwasung Cosmetics held by founder Ryu Kyung-hoon and other shareholders at a subsequent date. This structure preserves founder involvement while providing Affirma Capital with a clear exit mechanism.
For Affirma Capital, the transaction represents a successful conclusion to its seven-year investment thesis in K-beauty manufacturing. The firm originally acquired Hwasung Cosmetics in 2019 and executed a bolt-on acquisition strategy by adding Nowcos in 2022, building a diversified portfolio spanning color cosmetics and basic skincare products. The deal demonstrates recovery of capital with value creation across the investment period.
Macquarie PE's acquisition strategy focuses on combining the two entities to establish a vertically integrated K-beauty manufacturing platform. Hwasung Cosmetics is positioned as a leader in color cosmetics, while Nowcos specializes in basic skincare formulations, allowing Macquarie to create complementary operational and commercial capabilities. Samsung Securities and Rothschild acted as sell-side advisors, facilitating the transaction execution.
The deal reflects a broader macrotrend in global private equity capital allocation toward K-beauty infrastructure assets. Recent comparable transactions include KKR's acquisition of Samhwa and CVC Capital's investment in Silicon2, indicating that international PE firms are increasingly pursuing manufacturing and distribution assets alongside brand-level investments. This shift reflects growing confidence in South Korea's cosmetics manufacturing ecosystem and the strategic value of secured manufacturing capacity for the accelerating global K-beauty market.
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