E.l.f. Beauty has acquired the fast-growing skin care brand Naturium for $355 million in a combination of cash and stock. The acquisition is expected to close around Sept. 30, 2023 and will double E.l.f.’s presence in the skin care category to approximately 18% of the company’s retail sales.
“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,” said Tarang Amin, Chairman and CEO of E.l.f. in a statement. “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.”
Naturium was launched in 2019 by Los Angeles-based brand accelerator The Center, with the aim of providing high-performance skin care products at an accessible price point. In 2020, YouTube creator Susan Yara joined the brand as a Founder, a move that led to some controversy when Yara promoted the brand in her content without initially disclosing her involvement with the company.
That proved to be a minor bump in the road though. The brand has seen net sales grow at a compounded annual rate of more than 80% over the last two years, and this year it expects to bring in approximately $90 million in net sales, according to a company statement. Naturium products have an average price point of $18 and are currently sold 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,” continued 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.”
E.l.f. plans to continue to operate the Naturium business from its headquarters in Los Angeles and maintain the brand’s employee base.
“I have admired E.l.f., and their deep commitment to being a different kind of beauty company, for years now,” said Yara in a statement. “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 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.”