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[Alpha Biz=(Chicago) Reporter Paul Lee] Global private equity fund (PEF) operator TPG will resume investment activities in Korea for the first time in about three years. It is a large buyout fund formed last year and is expected to expand its investment in Korea, including new mergers and acquisitions (M&A).
According to the investment banking (IB) industry, TPG decided to acquire Samhwa, a company that manufactures and sells cosmetics containers, and recently signed a stock trading contract with CEO Cho Sung-hwan, the largest shareholder.
Founded in 1977, Samhwa is currently 100% owned by CEO Cho and related parties. The market expects the total sale price to be around KRW 300 billion. Sales reached 134.9 billion won and net profit reached 14.2 billion won last year.
Samhwa signed a memorandum of understanding with CJ CheilJedang and decided to manufacture cosmetics containers with eco-friendly biodegradable materials and already applied them to CJ Olive Young's own brand products last year.
TPG's last investment in the Korean market was in 2020, when it invested a total of 250 billion won by participating in the Kakao Bank's paid-in capital increase. The last management deal was Health Balance, a comprehensive health food company that was acquired in 2019. At that time, it acquired a 100% stake from Anchor Equity Partners for 280 billion won.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
