According to e.l.f. Beauty, Naturium is expected to generate $90 million in net sales this year, with an additional $48 million projected for e.l.f. Beauty’s fiscal year 2024.
On August 29, e.l.f. Beauty announced that it has signed a definitive agreement to acquire Naturium for expanding its skincare.
The parent company of e.l.f. Cosmetics, W3ll People and Keys Soulcare is set to strengthen its presence in the skincare market with the acquisition of Naturium for $355 million. This strategic move aims to enhance e.l.f. Beauty’s portfolio and establish a significant foothold in the skincare sector, which is projected to account for 18% of retail sales after the completion of the acquisition, expected around Sept. 30.
Naturium, established in 2019 under the Los Angeles-based brand accelerator The Center, experienced significant growth with an 80% compound annual growth rate. Naturium, known for its products sold at Target, Amazon, and Naturium.com, offers a range of skincare items with an average price of $18 per product. Some of its popular offerings include a hero body wash, a vitamin C complex serum, and a moisturizer with SPF 50. The acquisition confirms previous reports that Naturium was exploring potential deals. According to e.l.f. Beauty, Naturium is expected to generate $90 million in net sales this year, with an additional $48 million projected for e.l.f. Beauty’s fiscal year 2024.
Tarang Amin, the chairman and CEO of e.l.f. Beauty, expressed enthusiasm about the acquisition, stating, “We are thrilled to welcome Naturium to the e.l.f. Beauty family. Nearing two decades in business, we continue to deliver exceptional results.” He highlighted e.l.f. Skin as one of the fastest-growing skincare brands and emphasized the unique opportunity presented by Naturium’s integration into e.l.f. Beauty to accelerate growth in the skincare market.
E.l.f. Beauty currently holds a dominant position as the largest cosmetics and skincare brand at Target Corp. Amin believes that leveraging e.l.f. Beauty’s strong relationship with Target will facilitate increased visibility for Naturium within the retailer, as well as on Amazon. Furthermore, international expansion is on the horizon, with plans to introduce Naturium to e.l.f. Beauty’s international retailers, including Space NK in the U.K.
Susan Yara, the founder of Naturium, expressed excitement about joining forces with e.l.f. Beauty, acknowledging the company’s commitment to being a different kind of beauty company. Yara emphasized their shared missions and cultures, stating that e.l.f. Beauty would serve as an ideal partner to expand Naturium’s reach and make high-performance skincare accessible to all.
According to its latest earnings report, e.l.f. Beauty’s net sales increased 76% to $216.3 million, and its skincare category, e.l.f Skin, also ranked ninth on the list of skincare brand among teens for spring 2023.
