e.l.f. Beauty To Buy Naturium In A $355 Million Deal

By Amit Chowdhry • Aug 31, 2023

e.l.f. Beauty recently announced that it signed a definitive agreement to buy Naturium, a fast-growing, high performance skin care brand for $355 million in a combination of cash and stock, furthering its mission to make the best of beauty accessible to every eye, lip, face and skin concern. This deal is expected to double e.l.f. Beauty’s presence in skin care to about 18% of retail sales. The deal, which is subject to customary closing conditions, is expected to close around September 30, 2023.

Naturium launched in 2019 by Los Angeles based brand accelerator The Center and propelled further in 2020 with the joining of one of the industry’s leading skin care authorities, Susan Yara as a founder, and a minority investment in 2021 from the female-founded growth equity firm Prelude Growth Partners. Naturium has been driven by the belief that high performance skin care should be and can be clinically effective, skin compatible and affordable. And the brand has seen exceptional growth, with net sales growing at an approximately +80% CAGR over the last two years, and approximately $90 million of net sales expected this year.

Naturium has been known for powerful ingredient-led formulas that combine efficacy with an elevated skin care experience at an accessible price point. And some of its best-selling products include The Glow Getter Multi-Oil Hydrating Body Wash, Vitamin C Complex Serum, and Dew-Glow Moisturizer SPF 50. 

With an average selling price of about $18, Naturium products are currently available at Target, Amazon, naturium.com, and select international retailers. And Naturium is one of Target’s fastest growing skin care brands2 and was awarded Beauty Vendor of the Year in 2022.  

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.  

Deal Details

The total deal purchase consideration is approximately $355 million, subject to certain customary purchase price adjustments. And e.l.f. Beauty expects to finance the transaction using available cash on hand, borrowings under e.l.f. Beauty’s existing credit facility and approximately $70 million, or approximately 600,000 shares, of e.l.f. Beauty stock issued directly to founders and key management.  

Naturium is expected to generate about $90 million of net sales and $17 million in adjusted EBITDA this year.3 The purchase price implies a multiple of approximately 4x net sales and approximately 21x adjusted EBITDA.  

e.l.f. Beauty expects Naturium to generate 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. This considers Naturium’s contribution for approximately half of e.l.f. Beauty’s fiscal year, based on the expected timeline for the transaction to close around September 30, 2023.  


“We are thrilled to welcome Naturium to the e.l.f. Beauty family. 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.”  

“We have remained disciplined in pursuing strategic extensions that can leverage our strengths and bring complementary capabilities to e.l.f. Beauty. 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.”  

— Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer

“We’ve built an incredible brand, with numerous superstar formulas, a dedicated community and a world class team in less than four years. I have admired e.l.f., and their deep commitment to being a different kind of beauty company, for years now. They care about their community and their employees, which is truly meaningful to me, especially as a female founder. 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 skin care accessible for all.”  

— Susan Yara, Naturium’s Founder