Key Takeaways:

• Five to six parties participated in the preliminary bidding round, with Macquarie PE  selected as the preferred bidder.
• A consortium of Korea Investment Private Equity and EcoPro Partners, along with a European strategic investor, also bid. 
• Global private equity investment in K-beauty is expanding from brands into manufacturing infrastructure.

Macquarie Private Equity expands its exposure to the K-beauty manufacturing sector.

WHO: Hwasung Cosmetics is an original design manufacturer (ODM) producing color cosmetics such as eyebrow products, supplying global major brands including L'Oréal and Estée Lauder as well as South Korean indie brands. Nowcos is an ODM specializing in skincare products.

Macquarie Group was founded in Sydney in 1969 with a conviction that businesses can do more to contribute to society. Macquarie PE is the private equity arm of the Australia-based global asset manager.

Affirma Capital is the leading mid-market private equity firm and manages over $4 billion of assets across Korea, India, Southeast Asia, China, Africa, and the Middle East. Since 2002, they have deployed over $6 billion in 101 companies and returned over $7 billion in cash to leading global institutional investors.

WHY: The deal highlights a trend of international investors' interest in the manufacturing and distribution infrastructure underpinning K-beauty’s global expansion, as private equity groups seek diversification beyond individual consumer brands.

DETAILS:

• Macquarie PE, the private equity arm of Macquarie Asset Management, to acquire Hwasung Cosmetics and Nowcos for approximately KRW 300 billion ($216.6 million).
• The transaction covers Affirma Capital's 70%...