e.l.f. Beauty announced it has entered a definitive agreement to acquire skin care brand Naturium.
The deal, valued at $355 million, is expected to double e.l.f. Beauty’s presence in the skin care market to approximately 18% of retail sales, the company said in a Tuesday (Aug. 29) press release. The acquisition is set to be completed around Sept. 30, subject to customary closing conditions.
“e.l.f. SKIN is one of the fastest growing skin care brands, and Naturium joining e.l.f. Beauty presents a unique opportunity to significantly accelerate the potential we see in skin care,” e.l.f. Beauty Chairman and CEO Tarang Amin said in the release.
Naturium, launched in 2019 by brand accelerator The Center, has seen its net sales grow at an approximately 80% compound annual growth rate (CAGR) over the last two years, with an expected $90 million in net sales for this year, according to the release. Naturium products are available at Target, Amazon, naturium.com and select international retailers.
e.l.f. Beauty plans to continue operating Naturium from its headquarters in Los Angeles and maintain its team of employees, per the release.
“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,” Naturium founder Susan Yara said in the release.
e.l.f. Beauty and other mass-market beauty brands have been growing, driven by consumers increasing their spending on cosmetics after the pandemic while also looking for bargains amid rising inflation, Bloomberg reported Tuesday.
Both e.l.f. Beauty and Naturium highlight that their ingredients are clean and not tested on animals, according to the report.
Amin said in February that e.l.f. Beauty has expanded the beauty category by offering the right value proposition.
“We make the best of beauty accessible to every eye, lip, face and skin concern,” Amin said during a Feb. 1 earnings call.
“We often get questions whether our growth can be attributed to trade-down from prestige or trade within from mass,” he added during the call. “While we see the benefits of each, we believe the more fundamental point is that our value proposition creates accessibility, driving category expansion.”
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