Cosmetics company Elf Beauty Inc. will reportedly acquire skincare brand Naturium for US$355 million in cash and stock as it aims to expand its presence in the skin care industry.
The acquisition is expected to double the cosmetics company’s share of retail sales in skincare by an estimated 18%, according to Bloomberg. Elf Beauty also currently owns its make-up brand Elf Cosmetics and its skincare brand Elf Skin.
Founded in 2019 by beauty brand incubator The Center and influencer Susan Yara, Naturium has been growing at an 80% compound annual growth rate over the last two years, said Tarang Amin, chairman and chief executive officer at Elf Beauty to The Business of Beauty (TBB).
When speaking about the acquisition, Amin added that Naturium’s growth and the fact that it is both on the top and bottom line reminds him of ELF 10 years ago when it had excellent products but lacked distribution channels.
Naturium’s 25-person Los-Angeles based team will remain at the brand post-acquisition with upcoming plans to grow the staff over the next few months, Amin said.
Earlier this month, Elf Beauty reported its 18th consecutive quarter of sales growth and Naturium is expected to hit US$90 million in net sales with US$17 million in adjusted earnings this year, according to media reports.
MARKETING-INTERACTIVE has reached out for more information.
Competition among cosmetics brands has been heating up as Natura &Co Holdings also considers the sale of The Body Shop, according to a security filing seen by MARKETING-INTERACTIVE. This comes as The Body Shop sees another quarter of declining sales. Q4 net revenue, according to financial reports, declined by 8.4% at constant currency.
Natura &Co wrote in the filing that its board of directors “recently authorised its management to explore strategic alternatives for The Body Shop.” The alternatives, the document stated, includes a “potential sale” of the business.
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