08.29.23
ELF Beauty has signed a definitive agreement to acquire Naturium, a fast-growing skin care brand for $355 million in a combination of cash and stock. The deal is expected to double ELF Beauty’s presence in skin care to approximately 18% of retail sales, the company said.
The transaction, which is subject to customary closing conditions, is expected to close around September 30, 2023.
According to Tarang Amin, ELF Beauty’s chairman and CEO, Naturium aligns with the company’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.”
He added that Naturium “presents a unique opportunity to significantly accelerate the potential we see in skin care.”
Naturium’s best-selling products include The Glow Getter Multi-Oil Hydrating Body Wash, Vitamin C Complex Serum and Dew-Glow Moisturizer SPF 50. The brand’s average selling price is approximately $18. Products are currently available at Target, Amazon, naturium.com and select international retailers. Naturium is one of Target’s fastest growing skin care brands and was named Target’s beauty vendor of the year in 2022.
“We have remained disciplined in pursuing strategic extensions that can leverage our strengths and bring complementary capabilities to e.l.f. Beauty,” noted Amin. “Naturium has built something special. With efficacious products at accessible price points and a community first mindset, Naturium reminds me of where e.l.f. was when I became CEO over nine years ago. Naturium demonstrates the same spirit, values and growth characteristics we find in e.l.f."
ELF Beauty, which was ranked No. 22 in Happi's 2023 Top 50 Report, also owns Keys Soul Care and Well People.
“We’ve built an incredible brand, with numerous superstar formulas, a dedicated community and a world class team in less than four years,” said Susan Yara, Naturium’s Founder. “I have admired ELF and their deep commitment to being a different kind of beauty company, for years now. They care about their community and their employees, which is truly meaningful to me, especially as a female founder. With our complementary missions and cultures, I know ELF Beauty will be the ideal partner as we expand our reach, and continue to make high performance skin care accessible for all.”
ELF Beauty plans to continue to operate the Naturium business from its headquarters in Los Angeles, CA and retain the brand’s current employees.
The transaction, which is subject to customary closing conditions, is expected to close around September 30, 2023.
According to Tarang Amin, ELF Beauty’s chairman and CEO, Naturium aligns with the company’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.”
He added that Naturium “presents a unique opportunity to significantly accelerate the potential we see in skin care.”
Natrium's Mass Market Success
Naturium was launched in 2019 by The Center, Los Angeles based brand accelerator. The brand has seen “exceptional growth,” according to ELF Beauty, with net sales growing at an approximately more than 80% CAGR over the last two years. Net sales are expected to hit about $90 million this year, according to estimates.Naturium’s best-selling products include The Glow Getter Multi-Oil Hydrating Body Wash, Vitamin C Complex Serum and Dew-Glow Moisturizer SPF 50. The brand’s average selling price is approximately $18. Products are currently available at Target, Amazon, naturium.com and select international retailers. Naturium is one of Target’s fastest growing skin care brands and was named Target’s beauty vendor of the year in 2022.
“We have remained disciplined in pursuing strategic extensions that can leverage our strengths and bring complementary capabilities to e.l.f. Beauty,” noted Amin. “Naturium has built something special. With efficacious products at accessible price points and a community first mindset, Naturium reminds me of where e.l.f. was when I became CEO over nine years ago. Naturium demonstrates the same spirit, values and growth characteristics we find in e.l.f."
ELF Beauty, which was ranked No. 22 in Happi's 2023 Top 50 Report, also owns Keys Soul Care and Well People.
“We’ve built an incredible brand, with numerous superstar formulas, a dedicated community and a world class team in less than four years,” said Susan Yara, Naturium’s Founder. “I have admired ELF and their deep commitment to being a different kind of beauty company, for years now. They care about their community and their employees, which is truly meaningful to me, especially as a female founder. With our complementary missions and cultures, I know ELF Beauty will be the ideal partner as we expand our reach, and continue to make high performance skin care accessible for all.”
ELF Beauty plans to continue to operate the Naturium business from its headquarters in Los Angeles, CA and retain the brand’s current employees.