e.l.f. Beauty to Acquire Skin Care Brand Naturium for $355M
e.l.f. Beauty has signed a definitive agreement to acquire Naturium, a fast-growing, high performance skin care brand for $355 million in a combination of cash and stock, the company announced Tuesday. The deal is expected to double e.l.f. Beauty’s presence in skin care to approximately 18 percent of retail sales. The transaction, which is subject to customary closing conditions, is expected to close around Sept. 30. The acquisition of Naturium furthers the beauty retailer's mission to make the best of beauty accessible to every eye, lip, face and skin concern, according to a company press release.
Naturium has seen exceptional growth, with net sales growing at an approximately 80-plus percent CAGR over the last two years, and approximately $90 million of net sales expected this year. Naturium products are currently available at Target, Amazon.com, naturium.com, and select international retailers.
Total Retail's Take: In the highly competitive beauty space, e.l.f. Beauty continues to showcase strong growth. In August, e.l.f. Beauty raised its 2024 outlook after posting quarterly net sales growth of 76 percent. The addition of Naturium to its brand portfolio, which includes e.l.f. Cosmetics, e.l.f. SKIN, Well People, and Keys Soulcare, signals that the company isn't slowing down anytime soon.
"Naturium joining e.l.f. Beauty presents a unique opportunity to significantly accelerate the potential we see in skin care,” said Tarang Amin, e.l.f. Beauty’s chairman and CEO.
Naturium was launched in 2019 by Los Angeles-based brand accelerator, The Center, and propelled further in 2020 with the joining of one of the industry’s leading skin care authorities, Susan Yara as a founder, as well as a minority investment in 2021 from the female-founded growth equity firm Prelude Growth Partners.
The two companies espouse similar missions centered around social impact, diversity, sustainability and clean beauty. “I've admired e.l.f., and its deep commitment to being a different kind of beauty company for years now," Yara commented. "With our complementary missions and cultures, I know e.l.f. Beauty will be the ideal partner as we expand our reach and continue to make high performance skin care accessible for all.”
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
