Daol PE buys Youngil Glass to ride Korean cosmetics boom

Daol Private Equity has acquired Youngil Glass Industry Co., a South Korean manufacturer of glass containers, in a 65 billion won ($44.5 million) deal, to ride on the global rise of independent Korean skincare brands.

The Seoul-based private equity firm, specializing in middle-market buyouts, has completed the purchase of a 100% stake in Youngil Glass from its founding family earlier this week, according to investment banking sources.

It aims to expand the small-sized container maker into a global leader in the cosmetics packaging market. Daol PE will bring in professional management and enhance operations through data-driven smart factory systems. 

Founded in 1972, Youngil Glass focuses on cosmetic glass containers. It operates two factories in Hwaseong, about 40 kilometers from Seoul, with a combined annual capacity of 180 million units.

It counts some 100 domestic and foreign cosmetics makers as clients, including LG H&H Co., as well as budget-friendly brands such as Nature Republic Co. and Skin Food Co.

Daol PE is betting on the growth of Korean indie brands in the beauty market.

Many indie skincare brands outsource production to third-party manufacturers while sourcing containers from packaging specialists like Youngil Glass.

In 2023, Youngil Glass swung to a profit of 326.0 million won from a loss of 1.3 billion won in the year prior. Its revenue grew 19% on-year to 17.3 billion.

Samil PwC managed the sale to Daol PE.

Write to Jong-Kwan Park at pjk@hankyung.com

Yeonhee Kim edited this article.