E.L.F. Beauty to acquire Naturium for US$355M, doubling skin care presence in retail

30 Aug 2023 --- E.L.F. Beauty has signed a definitive agreement to acquire the skin care brand Naturium in a combination of cash and stock, expanding its range of beauty products addressing eye, lip, face and skin concerns.

The deal is expected to double E.L.F. Beauty’s presence in skin care to approximately 18% of retail sales. The transaction, which is subject to customary closing conditions, is expected to close around September 30, 2023.

“Naturium aligns with E.L.F. Beauty’s vision to create a different kind of beauty company with brands built to disrupt norms, shape culture and connect communities through positivity, inclusivity and accessibility,” says Tarang Amin, E.L.F. Beauty’s chairman and CEO.

“Nearing two decades in business, we continue to deliver exceptional results. In August, we raised our Fiscal 2024 outlook after posting quarterly net sales growth of 76%, marking 18 consecutive quarters of more than 20% sales growth on average.”

Naturium posted net sales growing at approximately +80% CAGR over the last two years and approximately US$90 million of net sales expected this year.Sales forecast
Naturium was launched in 2019 by Los Angeles-based brand accelerator, The Center. In 2020, beauty and lifestyle influencerSusan Yara joined the company as a founder, which led to a minority investment in 2021 from the female-founded growth equity firm Prelude Growth Partners. 

The brand has posted net sales growing at an approximately +80% CAGR over the last two years and approximately US$90 million of net sales is expected this year.

Naturium’s range of best-selling products include The Glow Getter Multi-Oil Hydrating Body Wash, Vitamin C Complex Serum and Dew-Glow Moisturizer SPF 50. Its collection is currently available at Target, Amazon, naturium.com and select international retailers.

“We have remained disciplined in pursuing strategic extensions that can leverage our strengths and bring complementary capabilities to E.L.F. Beauty,” says Amin.

“With efficacious products at accessible price points and a community first mindset. Naturium reminds me of where E.L.F. Beauty was when I became CEO over nine years ago. Naturium demonstrates the same spirit, values and growth characteristics we find in E.L.F. Beauty.”

Earlier this month, E.L.F. Beauty raised its fiscal 2024 outlook in its reporting of financial results for the first quarter of fiscal 2024, which ended on June 30, 2023. The updated outlook for fiscal 2024 reflects an expected 37% to 39% year-over-year increase in net sales, as compared to an expected 22% to24% increase previously.

Edited by Benjamin Ferrer