In a expand its skincare portfolio, a definitive agreement to acquire Naturium, valued at approximately $355 million, combines cash and stock and is expected to close around September 30, 2023.
Tarang Amin, Chairman and CEO of e.l.f. Beauty, expressed his excitement about the acquisition, stating, “We are thrilled to welcome Naturium to the e.l.f. Beauty family.” He further added that Naturium aligns with e.l.f. Beauty’s vision of creating a different kind of beauty company that disrupts norms, shapes culture, and connects communities through positivity, inclusivity, and accessibility.
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Naturium was launched in 2019 by Los Angeles-based brand accelerator, The Center, and gained momentum in 2020 when skincare authority Susan Yara joined as a founder. The brand, which believes in providing clinically effective, skin-compatible, and affordable high-performance skincare, has seen exceptional growth over the last two years, with net sales growing at approximately +80% CAGR. It is expected to generate approximately $90 million of net sales this year.
Naturium’s product line, known for its powerful ingredient-led formulas, includes best-sellers like The Glow Getter Multi-Oil Hydrating Body Wash, Vitamin C Complex Serum, and Dew-Glow Moisturizer SPF 50. Available at Target, Amazon, naturium.com, and select international retailers, Naturium has become one of Target’s fastest-growing skincare brands and was awarded Beauty Vendor of the Year in 2022.
Amin further emphasized e.l.f. Beauty’s disciplined approach in pursuing strategic extensions that leverage their strengths and bring complementary capabilities to the company. He compared Naturium’s spirit, values, and growth characteristics to those of e.l.f. when he became CEO over nine years ago.
Susan Yara, Naturium’s Founder, admired e.l.f. and their commitment to being a different kind of beauty company. She stated, “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 skincare accessible for all.”
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The total purchase consideration is subject to certain customary purchase price adjustments. e.l.f. Beauty expects to finance the transaction using available cash on hand, borrowings under its existing credit facility, and approximately $70 million, or approximately 600,000 shares, of e.l.f. Beauty stock is issued directly to founders and key management.
Post-acquisition, e.l.f. Beauty plans to continue operating the Naturium business from its headquarters in Los Angeles, CA, nurturing its entrepreneurial spirit and maintaining the brand’s passionate team of employees. The acquisition is expected to contribute approximately $48 million in net sales, approximately $9 million in adjusted EBITDA, and approximately $0.04 in adjusted EPS on a fully diluted basis in fiscal 2024 to e.l.f. Beauty.