Macquarie acquires Hwasung and NOWCOS in USD 217M deal
The sale process for Hwasung began in March this year, 2026.
SOUTH KOREA – Macquarie Private Equity, the private equity arm of Australia-based Macquarie Asset Management, has signed a share purchase agreement to acquire South Korean cosmetics manufacturers Hwasung Cosmetics and Nowcos for approximately ₩300 billion (USD 216.6 million).
The transaction covers Affirma Capital’s 70% stake in Hwasung Cosmetics and its 100% stake in Nowcos, with Macquarie PE also planning to acquire the remaining 30% founder stake in Hwasung Cosmetics, held by founder Ryu Kyung-hoon and other shareholders.
Samsung Securities and Rothschild acted as sell-side advisors on the deal, which was finalized just one month after Macquarie PE was named preferred bidder, underscoring how global private equity interest in K-beauty is shifting from brand-focused investments toward manufacturing and distribution infrastructure.
Affirma Capital, which acquired a 70% controlling stake in Hwasung Cosmetics in 2019 and later added Nowcos in 2022 as a bolt-on acquisition, has now recovered its investment after seven years.
The sale process has drawn five to six preliminary bidders; in the final round, Macquarie PE competed against a consortium of Korea Investment Private Equity and EcoPro Partners, as well as a European strategic investor.
Affirma has logged a steady string of exits in 2026, having already sold Sungkyung Food and Seah E&S before closing this transaction, and is currently raising its seventh blind-pool fund with a target size of ₩500 billion ( USD 361 million).
Hwasung Cosmetics and Nowcos hold differentiated positions in color cosmetics and skincare, respectively.
Hwasung is an original design manufacturer (ODM) producing color cosmetics such as eyebrow products for global majors including L’Oréal and Estée Lauder as well as South Korean indie brands, while Nowcos is an ODM focused on skincare.
After taking control of Hwasung in 2019, Affirma enhanced both companies’ value through peer acquisitions, strengthened R&D, and expanded overseas marketing.
Hwasung’s revenue grew roughly 2.2-fold from ₩50.1 billion ( USD 36.2 million) in 2019 to ₩110.6 billion (USD 79.8 million) last year, with operating profit rising about 5.2-fold from ₩3.8 billion ( USD 2.7 million) to ₩19.8 billion (USD 14.3 million); last year’s EBITDA was approximately ₩24 billion (USD 17.3 million). Nowcos generated revenue of around ₩69.5 billion (USD 50.2 million) last year.
In February, Affirma conducted a tender offer for Nowcos’ remaining shares on the KONEX market and voluntarily delisted the company to reduce listing burdens and improve sale prospects.
The deal aligns with a broader wave of global private equity capital flowing into K-beauty manufacturing and distribution.
KKR acquired cosmetics container manufacturer Samhwa last year for ₩730 billion (USD 527 million), and CVC Capital invested ₩300 billion (USD 216.6 million) in K-beauty distributor Silicon2 in August.
Macquarie’s acquisition is seen as a similar move to secure foundational assets in the K-beauty value chain.
Macquarie Asset Management, a global infrastructure-focused asset manager headquartered in Australia, has previously invested in South Korean assets including DIG Airgas, LG CNS, S&I Corporation, and Genuone Sciences.
It recently recycled significant capital, selling DIG Airgas to Air Liquide for about ₩4.85 trillion (USD 3.5 billion) earlier this year and exiting its remaining LG CNS stake via a block deal for ₩530 billion (USD 382.6 million), freeing capacity for new investments.
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