24 May 2019
BDA advises Hwa Sung Cosmetics on sale to Affirma Capital/SCPE
Agreed to divest a 70% stake to Affirma/SCPE
BDA Partners is pleased to announce that its client, the founder of Hwa Sung Cosmetics (“Hwa Sung”), has agreed to divest a controlling equity stake in Hwa Sung to Affirma Capital, formerly known as Standard Chartered Private Equity (“SCPE”). The value of the transaction is not disclosed.
Hwa Sung is a leading Korean OEM/ODM manufacturer of color cosmetics. Hwa Sung provides one-stop, integrated solutions from formulation to packaging. Hwa Sung’s culture of innovation has led to strong capabilities, most notably in eyebrow pencils. Hwa Sung has expanded its product portfolio to eyeliners, lipsticks, and facial foundations, leveraging its proprietary formulation technology and supply chains. Hwa Sung’s products are supplied to global brands including Amore Pacific, Anastasia, Estee Lauder and Shiseido. Hwa Sung is one of the top-four global eyebrow product manufacturers together with Schwan-Stabilo and Faber-Castell, both from Germany, and Tokiwa from Japan.
BDA Partners was the exclusive financial advisor to the founder of Hwa Sung on the transaction.
Howard Lee, Managing Director, BDA Partners commented, “We’re proud to have advised the founder on his successful majority sale of Hwa Sung. We are confident that the business will continue to flourish under Affirma Capital/SCPE ownership. This transaction illustrates how BDA works seamlessly with private owners looking to realize their investments through new partnerships with reputable, global investors who can support further growth. We’re pleased to have helped achieve a highly positive outcome for the founder.”
BDA Consumer Team
Euan Rellie, Senior Managing Director, New York
Karen Cheung, Managing Director, Hong Kong
About Hwa Sung Cosmetics
Established in 1994 in Korea, Hwa Sung is a leading Korean OEM/ODM company specialized in eyebrow and other color cosmetics products. Together with its affiliated companies, it provides integrated end-to-end color cosmetic solutions from formulation to packaging. It has expanded its product portfolio to eyeliners, lipsticks, facial foundations, leveraging proprietary formulation technology and its supply chains. It was a supplier of four of the “Global 15 Best Eyebrow Products” selected by Allure in 2018. Hwa Sung has an established footprint both in Korea and globally. Its customers include many global heritage and independent brands including Amore Pacific, Anastasia, Estee Lauder Group and Shiseido. It is considered one of the global top-four eyebrow product manufacturers together with Schwan-Stabilo and Faber-Castell, both from Germany, and Tokiwa from Japan. www.hwasungcos.com
About Affirma/Standard Chartered Private Equity
Affirma/SCPE is a global private equity firm headquartered in Singapore with offices in Africa, UAE, Hong Kong, India, South Korea and China. The firm invests in balance sheet restructuring, expansion and growth capital, acquisitions or management buyouts, and mezzanine. Affirma Capital, a newly formed independent private equity firm owned and operated by the former management team of SCPE, will manage the SCPE portfolio going forward. Global alternative investment firm Intermediate Capital Group (ICG) has agreed to acquire the majority of Standard Chartered’s PE assets for US$1bn through its secondaries unit, ICG Strategic Equity. The acquired portfolio comprises investments in 35 companies in SE Asia, India, China, South Korea, the Middle East and Africa. As part of the transaction, ICG has also agreed to provide Affirma with US$400m for new investments and follow-on commitments to the acquired portfolio companies. The transaction is expected to be completed in the first half of 2019. www.sc.com
BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 20 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.
BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets.
US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorised and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors.
Acquired Rich Graviss
Divested controlling stake to Grass Green Group
Divested assets to Centric Brands
Divested Alliance Cosmetics Group to Mandom
Investcorp invested up to $250m in China Everbright New Economy Fund
Divested Leyou to Warburg Pincus
Divested Chinese RTW business to a Hong Kong-based investor
Divested Gourmet Noodle House to GreenTree Inns
Growth capital raise
Divested Harrys of London to Charles Cohen
Acquired Chinese food ingredients company, Tianning Flavours
Merged with Fitness First Asia, led by Navis Capital
Raised growth capital
Divested Happy Socks to Palamon
Divested Theodore Alexander to Creative Home Furniture
Divested Clark's Botanicals to Glansaol
Raised growth capital from Standard Chartered Private Equity
Divested King Koil China to Advent International
Divested CHS Ningbo Protein Foods to Shandong Wonderful
Divested lighting business, Halonix Technologies