e.l.f. Beauty has signed a definitive agreement to acquire Naturium, a fast-growing skin care brand for USD 355 million in a combination of cash and stock.
Naturium was launched in 2019 by Los Angeles-based brand accelerator, The Center. In 2020, beauty and lifestyle influencer Susan Yara joined the company as a founder and in 2021, a minority investment in 2021 from equity firm Prelude Growth Partners helped to fund its growth. Naturium has seen strong growth, with net sales growing at an approximately +80% CAGR over the last two years. The brand is expected to generate approximately USD 90 million of net sales and USD 17 million in adjusted EBITDA this year. 
With an average selling price of approximately USD 18, Naturium products are currently available at Target, Amazon, naturium.com and select international retailers. Naturium is one of Target’s fastest growing skin care brands. 
“Naturium aligns with e.l.f. 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. Nearing two decades in business, we continue to deliver exceptional results. In August, we raised our Fiscal 2024 outlook after posting quarterly net sales growth of 76%, marking 18 consecutive quarters of more than 20% sales growth on average. e.l.f. SKIN is one of the fastest growing skin care brands, and Naturium joining e.l.f. Beauty presents a unique opportunity to significantly accelerate the potential we see in skin care,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer.
The deal is expected to double e.l.f. Beauty’s presence in skin care to approximately 18% of retail sales.
e.l.f. Beauty plans to continue to operate the Naturium business from its headquarters in Los Angeles, CA, maintaining the brand’s team of employees.
The transaction, which is subject to customary closing conditions, is expected to close around September 30, 2023.