American multi-brand cosmetics company ELF Beauty has signed a definitive agreement to acquire skincare brand Naturium for US$355 million.
The acquisition, expected to settle late next month, will double ELF Beauty’s presence in the skincare market to about 18 per cent of retail sales.
Naturium was launched by brand accelerator The Center in 2019 with Susan Yara joining as a founder the following year. The brand has recorded a CAGR of about 80 per cent in net sales over the past two years and expects to reach $90 million of net sales and $17 million of adjusted EBITDA this year.
“We’ve built an incredible brand, with numerous superstar formulas, a dedicated community and a world-class team in less than four years,” said Yara.
“Naturium aligns with ELF 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 at ELF Beauty.
The company will continue to operate Naturium from its headquarters in Los Angeles and maintain its team of employees, expecting the skincare brand to contribute approximately $48 million in net sales in FY24.
Committed to clean and cruelty-free beauty, ELF Beauty recently raised its full-year guidance after posting quarterly net sales growth of 76 per cent. The company’s portfolio includes ELF Cosmetics, ELF Skin, Well People and Keys Soulcare.
