The company says that the acquisition will boost its presence in the skincare category to help it reach 18% of total retail sales, serving to diversify its portfolio beyond eye, lip and face color cosmetics. The deal is estimated to close by the end of September, 2023.
The acquisition will be paid for using cash in hand, a credit facility and approximately 600,000 shares in e.l.f. Beauty stocks. Once integrated the new business is expected to contribute approximately an additional $48 million in sales during the course of fiscal 2024.
Naturium is only four years old
“We are thrilled to welcome Naturium to the e.l.f. Beauty family,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. “Naturium aligns with e.l.f. Beauty’s vision to create a different kind of beauty company with brands built to disrupt norms.”
“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. Naturium demonstrates the same spirit, values and growth characteristics we find in e.l.f.,” Amin added.
Naturium is a relatively young skincare brand. It launched in Los Angeles in 2019, but grew rapidly on the philosophy that skincare should be clinically proven, skin compatible and affordable. This helped to grow sales by approximately 80% CAGR over the past two years, resulting in a forecast net sales of $90 million expected for the business this year.
The ingredient-led product lineup includes the Glow Getter Multi-Oil Hydrating Body Wash, Vitamin C Complex Serum and the Dew-Glow Moisturizer SPF 50, all which retail at an average price point of $18. The lineup is currently available on the company’s dedicated online site, as well as Amazon and Target, where it has been earmarked as one of the retailer’s fastest growing skincare brands.
e.l.f. Beauty’s rapid expansion
e.l.f. Beauty’s share price has risen markedly in the past year, on the back of its strong performance, rising from an average of $25 per share to reach a recent peak of $139, a figure that was boosted significantly when the company announced a 76% increase in its first quarter 2023 sales figures.
Established in 2004, e.l.f. Beauty has undergone a period of rapid expansion and diversification in the past five years that has led to 18 consecutive quarters of sales growth in excess of 20%, culminating in the company’ raising its fiscal 2024 net sales growth to 76%.
The company has been successfully growing its business with growing number of digital marketing campaigns, something that has been underlined by its recent sticky campaign, to promote its portfolio and specific new launches.
e.l.f. Sticky Shop
In April of this year, Cosmetics Design reported on how e.l.f. Beauty had taken the decision to build on the significant success of its eyes.lips.face sticky campaign, which included a drop merchandise shop that sold out on the back of its Super Bowl 2023 commercial.
The success of the merchandise shop led to company executives taking the decision to build on the merchandise shop with the inclusion of its newly launched Power Grip Primer in the merch shop line up.
One of the key elements of the Power Grip Primer campaign is a charitable tie-in that has seen the company commit to a $100,000 donation to the Whale and Dolphin Conservation organization, as well as a further $25,000 donation commitment from the proceeds of the Sticky Shop to the cause.