E.l.f. Beauty has announced the acquisition of skin care brand Naturium for $355 million. This major deal signals continued appetite for mergers and acquisitions in the beauty industry.
Founded in 2019, Naturium offers a range of buzzy, plant-based skin care products. The brand has built a strong social media presence and aligns with e.l.f. Beauty’s vision of inclusive, accessible beauty.
The acquisition nearly doubles e.l.f. Beauty’s skin care business to 18% of retail sales. It is expected to contribute approximately $48 million in net sales and $9 million in adjusted EBITDA in fiscal year 2024.
E.l.f. Beauty reported 76% year-over-year net sales growth in Q1 2022, to $216.3 million. They have remained strategic in choosing brand extensions, like launching e.l.f. Skin in June 2022.
Naturium shows growth characteristics similar to e.l.f. Beauty in its early days, according to CEO Tarang Amin. The deal will be financed through available cash, existing credit, and $70 million in e.l.f. Beauty stock.
This major acquisition comes amid increased M&A activity and IPO filings in the consumer brand space. It demonstrates continued opportunities for expansion in beauty.